U.S. Secretary of State Marco Rubio raised alarm on Thursday (April 2) over China’s growing detention of Panama-flagged vessels. According to him, Beijing is weaponizing economic tools to undermine the rule of law in a sovereign nation and key partner for global trade.
The detentions surged after a Panamanian court ruling in late January. At that time, Panama’s Supreme Court struck down the legal framework behind a 1997 concession granted to Panama Ports Company. The firm, a subsidiary of Hong Kong-based CK Hutchison, had been operating the Balboa and Cristobal terminals — located on the Pacific and Atlantic sides of the Panama Canal.
That decision came after mounting pressure from Washington to curb Chinese influence around the canal. The waterway is a critical artery for global commerce, handling roughly 5% of all maritime trade worldwide.
How China and CK Hutchison Responded
Beijing pushed back hard. Liu Pengyu, spokesperson for the Chinese embassy in Washington, said the repeated U.S. accusations only reveal an attempt to seize control of the canal. Earlier, the Chinese government had already called the court ruling an “act of bad faith.”
CK Hutchison, which operated the ports for nearly three decades, also rejected the decision. The company accused Panamanian authorities of unlawful seizure of property. On top of that, it launched an international arbitration case against Panama, claiming more than $2 billion in damages.
Detentions Far Above Normal Levels
The U.S. Federal Maritime Commission (FMC) reported last week that it was closely tracking a spike in detentions of Panamanian-registered ships at Chinese ports. According to the agency, the numbers far exceeded historical norms.
A Lloyd’s List Intelligence report put the figure at nearly 70 vessels detained since March 8. That volume strongly suggests the Chinese actions are directly linked to the port concession ruling.
Where the U.S. Stands
Rubio described the Panamanian court ruling as a sovereign decision. In his view, it upheld transparency, reinforced the rule of law, and held private operators accountable to the public interest.
He also made clear that Washington firmly supports Panama. The Secretary of State said the U.S. looks forward to expanding both economic and security cooperation with the country.
