U.S. Backs Panama Over Ships Held in China as Beijing Rejects Retaliation Claim

Overview

• China rejected a statement from U.S. Secretary of State Marco Rubio, calling the allegation of retaliatory detentions unfounded and saying Washington seeks control of the canal.
• Rubio said the United States firmly supports Panama and warned that detaining or delaying Panamanian-flag ships in Chinese ports harms global supply chains.
• Panama’s maritime chamber said roughly 80 Panamanian-flag vessels have faced holds of up to about ten days in China under stepped-up inspections.
• The U.S. Federal Maritime Commission signaled an inquiry into the intensified inspections of Panamanian-flag ships in Chinese ports.
• The dispute stems from Panama’s Supreme Court voiding a contract for the Balboa and Cristóbal ports, and Panama Ports Company says it will seek at least $2 billion in damages, with a Trump–Xi summit in Beijing set for May 14–15.