The U.S. State Department released an official statement on Thursday affirming its support for Panama's sovereignty in light of China's recent actions against Panamanian-flagged vessels, describing these actions as a direct threat to global maritime trade.
This statement follows an increase in inspections and detentions of Panamanian ships at Chinese ports. This escalation is seen as a response from Beijing after Panama's Supreme Court nullified, on January 30, the concession granted to the Hong Kong-based CK Hutchison Holdings to operate the port terminals of Balboa and Cristóbal, located at the ends of the Panama Canal. The court's decision was finalized on February 23, reinforcing the judicial ruling.
"China's actions against Panamanian-flagged vessels raise serious concerns about the use of economic tools to undermine the rule of law in Panama, a sovereign nation and a crucial partner for global trade," the statement declared.
Secretary of State Marco Rubio also spoke out on Thursday, clearly stating that Washington will not stand by while economic pressures are used to interfere with the sovereignty of allied nations or disrupt international free navigation.
Following the annulment of the concession, the Panamanian government temporarily appointed APM Terminals, a subsidiary of Maersk, to manage the terminals for an 18-month transitional period.
The U.S. Federal Maritime Commission (FMC) has also highlighted that the detentions far exceed historical port control norms, emphasizing the extraordinary nature of the measures taken by China.
According to gathered data, at least 70 Panamanian ships have been detained in Chinese ports amid this escalation.
Understanding the Impacts of China's Actions on Panama
Why did China increase inspections on Panamanian vessels?
China intensified inspections and detentions of Panamanian vessels as a retaliatory measure following Panama's Supreme Court decision to nullify a concession granted to CK Hutchison Holdings for operating key port terminals.
How has the United States responded to China's actions against Panama?
The United States has expressed strong support for Panama's sovereignty, condemning China's measures as threats to global maritime trade and pledging not to tolerate economic pressure tactics against allied nations.