Panama’s top diplomat called on China to respect its sovereignty on Wednesday, directly linking a sharp rise in detentions of Panama-flagged ships to a court ruling against Hong Kong-based conglomerate CK Hutchison.
Foreign Minister Javier Martinez-Acha made the remarks at a conference in Asuncion, Paraguay. He said Panama’s commercial fleet — the largest in the world — has seen a significant increase in inspections and detentions at Chinese ports since the ruling came down.
“Panama respects the legal sovereignty of all countries, and we simply ask for the same treatment for ourselves,” he said. He added that he hopes the spike in detentions, which began in March, will return to normal levels.
China’s embassy in Panama did not immediately respond to a request for comment.
What triggered the dispute
The conflict traces back to January, when Panama’s Supreme Court invalidated the legal framework behind CK Hutchison’s right to operate two key terminals near the Panama Canal. The Panamanian government then moved to cancel the concessions entirely.
CK Hutchison had operated those ports for nearly 30 years. The company has rejected the ruling, accused Panama of unlawfully seizing property, and launched an international arbitration case claiming more than $2 billion in damages.
China has sided firmly with CK Hutchison. Beijing called the court decision an “act of bad faith.” Since then, detentions of Panama-flagged vessels at Chinese ports have surged well beyond historical norms.
A flashpoint between the U.S. and China
The ship detentions have quickly become the latest front in the broader struggle between Washington and Beijing for influence over global trade routes. Panama — and its canal, which handles about 5% of worldwide maritime commerce — sits right in the middle.
The U.S. has been vocal in its support. In late March, the Federal Maritime Commission said it was closely monitoring the surge. Secretary of State Marco Rubio followed up earlier this month, saying the detentions raised serious concerns about the use of economic tools to undermine the rule of law.
On Saturday, Panama’s foreign ministry publicly thanked the United States and several other countries for raising the issue. The diplomatic backing appears to be strengthening Panama’s position, even as the arbitration case and geopolitical tension continue to escalate.
