The United States and several U.S.-allied Latin American and Caribbean nations on Tuesday released a joint statement in support of Panama amid the Chinese regime’s ongoing retaliatory campaign after Hong Kong-based CK Hutchison lost control of two key Canal ports.
In the statement, the U.S. alongside Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, after expressing their shared commitment to keep the Western Hemisphere safe and reaffirming that the freedom of the region is non-negotiable, expressed that they are closely monitoring China’s actions against Panama-flagged vessels.
The Chinese communist regime has engaged for weeks in a retaliatory campaign against Panama in response to the Panamanian Supreme Court’s annulment of two key contracts originally granted in 1997 to CK Hutchison subsidiary Panama Ports Company (PPC). The contracts granted the Hong Kong-based company — run by pro-communist businessman Li Ka-shing — control of two key Panama Canal ports located at opposite ends of the trade route, one in Balboa and the other in Cristóbal. The two ports are among the canal’s most important facilities, as they both handle as much as 40 percent of the entire canal’s traffic.
Panama’s top court annulled the two contracts in January in response to a lawsuit filed last year by Panamanian Comptroller General Anel Flores, who started a criminal complaint process against PPC in 2025 after an extensive investigation found that the contracts contained numerous violations of Panama’s rights, accusing the company of causing significant monetary damages to Panama.
The ruling officially went into effect in late February, allowing the administration of conservative President José Raúl Mulino to immediately take administrative control of the Balboa and Cristóbal ports and initiate a transitory process towards new contracts with other companies under fairer terms for the Central American nation.
Since then, the China began arbitrary detaining Panama-flagged vessels docking in Chinese ports and subjecting the vessels to additional “inspections” that have caused disruptions in the normal flow of Panamanian maritime trading. It is reportedly estimated that three out of every four Panamanian vessels docking in China have been subjected to the Chinese regime’s arbitrary measures.
“These actions — following the decision of Panama’s independent Supreme Court regarding the Balboa and Cristóbal terminals — are a blatant attempt to politicize maritime trade and infringe on the sovereignty of the nations of our hemisphere,” the statement read in part.
“Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure. Any attempts to undermine Panama’s sovereignty are a threat to us all,” the statement continued.
Secretary of State Marco Rubio echoed the statement in a social media post.
“The sovereignty of our hemisphere is non-negotiable. We are deeply concerned by China’s targeted economic pressure after the Balboa & Cristóbal terminals decision,” Sec. Rubio wrote. “We stand in solidarity with Panama. Any attempts to undermine Panama’s sovereignty are a threat to us all.”
Chinese Foreign Ministry Spokesperson Lin Jian referred to the joint statement responding to Agence France-Presse (AFP) during a Wednesday press conference. According to Lin, the statement contains allegations that are “completely unfounded and merely distortion of facts” and accused the U.S. of “coveting” and attempting to “own” the Panama Canal while “slandering” others with rumors. He also dismissed the arbitrary detentions as inspections as “routine” procedures in accordance to Chinese regulations.
Lin said:
Who exactly exerted long forcible control of the Panama Canal, invaded Panama and trampled on Panama’s sovereignty and dignity? Who exactly is coveting the Panama Canal, attempting to own an international waterway that should be permanently neutral, and disrespecting the sovereignty of countries in the region? The answer is rather clear. It is the United States that has framed normal affairs concerning relevant terminals as issues about politics and security.
It is the United States that has been making pretenses and slandering others with rumors. Chinese competent authority conducted routine inspections of vessels in accordance with laws and regulations. China’s position on the Panamanian ports issue is clear and will firmly defend its legitimate rights and interests. We urge relevant countries not to be blinded and utilized by those with ill intention.
A Trump administration official warned Breitbart News in March that China’s retaliatory measures against Panamanian vessels could disrupt global commerce. Days later U.S. Federal Maritime Commission (FMC) Chairman Laura DiBella announced that the United States was closely monitoring a surge in detentions of Panama-flagged vessels, and detailed that they appeared to be a “punishment” against Panama over the Supreme Court ruling, stressing that such actions could affect U.S. shipping.
Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.
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