According to an April 2 report from ABC News, U.S. Secretary of State Marco Rubio on Thursday accused China of “bullying” by briefly detaining dozens of vessels flying the Panama flag. This occurred after the Central American country earlier this year took back control of two key Panama Canal ports from a subsidiary of Hong Kong’s CK Hutchison.
Rubio said on social media: “China’s actions in impeding Panama’s lawful trade disrupt supply chains, increase costs, and undermine confidence in the global trading system. The United States supports Panama in exercising its sovereignty and will stand with our partner against any bullying.”
According to public data from the Asia‑Pacific port authority Tokyo MOU, in March China’s ports inspected 124 ships, of which 92 — about 75 percent — were Panama‑flagged. The Panama‑flagged ships were typically released after only a few days, but this proportion is much higher than in the previous two months. China’s embassy in the United States, through spokesperson Liu Pengyu, responded that the U.S. repeated accusations reveal Washington’s attempt to control the canal, but did not explain the reason for the rise in Panama vessel detentions.
Panama Canal dispute amid US–China strategic rivalry
In January, Panama’s Supreme Court ruled that the concession held by a Hong Kong CK Hutchison subsidiary for the Balboa and Cristóbal ports was unconstitutional. The U.S. has stepped up pressure on Panama and other Latin American countries to limit China’s influence in the Western Hemisphere. The Congressional Hill reported on April 8 that the Trump administration has intervened in Latin American affairs in unprecedented ways, including a January military operation to capture Venezuelan President Nicolás Maduro.
Laura DiBella, chair of the U.S. Federal Maritime Commission, said that U.S. tracking of Panama‑flagged vessels highlights the disruptive nature of China’s actions, adding: “No other country in recent history has conducted safety inspections and detentions in such a punitive manner.” Panama’s government has sought to downplay geopolitical tensions and has temporarily put a Maersk subsidiary in charge of port operations.
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China’s economic coercion and regional reactions
The Hill noted that China’s commercial pressure against Panama has sparked anger in Latin America and could push some countries to improve relations with Taiwan. China has long used debt traps and commercial threats against nations asserting their sovereignty. The arbitrary detentions of Panama‑flagged ships happened after Panama’s courts granted control of the canal ports to Panamanian authorities.
China has responded similarly in past setbacks. For example, last year it warned Mexico to “think twice before adjusting tariffs” when Mexico planned tariffs on imports from China and other countries to protect domestic industries and jobs, prompting criticism of China’s hypocrisy at regional summits.
The article also said that China’s model in Latin America resembles African debt trap projects, with failed infrastructure projects and criticism from international organizations over labor practices. Latin American countries are beginning to counter Chinese economic coercion: Bolivia tightened oversight on Chinese zinc mining, Chile shelved a submarine cable project, Honduras is seeking to restore diplomatic ties with Taiwan, and Argentina and Peru opted to acquire U.S. F‑16 fighters rather than China’s JF‑17 jets. The Hill commentary concluded that China’s policy unpredictability, combined with Trump’s strategic focus on the Americas, is driving unprecedented changes in the region.
