Rubio Slams China's "Bullying" of Panama Ships, Warns of Global Trade Threat

In a post on X, Secretary Marco Rubio stated, "China's decision to detain or otherwise impede Panama-flagged vessels engaged in lawful trade destabilises supply chains, raises costs, and erodes confidence in the global trading system. The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying."

This condemnation follows reports that the United States has levelled accusations against China for the targeted detention of Panama-flagged vessels within its ports last week. This development follows the decision by Panamanian authorities to take over two port facilities that were formerly under the management of a Chinese firm, sparking a significant maritime dispute.

In a statement addressing the situation, the US Federal Maritime Commission asserted that "China has now imposed a surge in detentions of Panama-flagged vessels in Chinese ports under the guise of port state control, far exceeding historical norms."

The commission further suggested that these actions were not standard procedure, noting that "these intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison's port assets."

The friction stems from a January ruling by a Panamanian court, which determined that the long-standing contract allowing Panama Ports Company (PPC), a subsidiary of the Hong Kong-based CK Hutchison, to operate the Cristobal and Balboa ports since 1997 was "unconstitutional."

This legal shift has impacted a critical global waterway that manages five per cent of international trade and approximately 40 per cent of container traffic destined for the United States.

Highlighting the economic stakes, the US maritime body expressed grave concern over the potential fallout for American commerce, noting that "given that Panama-flagged ships carry a meaningful share of US containerised trade, these actions could result in significant commercial and strategic consequences to US shipping."

Consequently, the Commission has invoked its authority to examine "whether regulations or practices of foreign governments result in conditions unfavourable to shipping in the foreign trade of the United States."

This escalating maritime row is unfolding against a backdrop of broader geopolitical tension, notably after US President Donald Trump alleged last year, without offering proof, that the canal is effectively operated by China.

While PPC has initiated a lawsuit through the International Chamber of Commerce in Paris seeking USD 2 billion in damages, all eyes are now on the upcoming summit in Beijing on May 14 and 15, where President Trump and President Xi Jinping are expected to address these trade-related grievances.

- ANI