U.S. Secretary of State Marco Rubio on Thursday expressed concern over China’s detention of Panama-flagged vessels, warning that the actions could undermine the rule of law and global trade stability.
The U.S. Federal Maritime Commission said it is closely monitoring a recent surge in detentions of vessels registered under Panama’s flag in Chinese ports. The developments appear to be linked to a court ruling in Panama against Hong Kong-based conglomerate CK Hutchison.
In a statement, Rubio said China’s actions raise “serious concerns about the use of economic tools to undermine the rule of law in Panama,” describing the country as a key partner in global commerce.
The dispute stems from a January ruling by Panama’s Supreme Court, which invalidated the legal framework behind a 1997 concession granted to CK Hutchison’s Panama Ports Company. The concession allowed the firm to operate major terminals at both ends of the Panama Canal—Balboa on the Pacific side and Cristobal on the Atlantic side.
The court’s decision came amid increasing pressure from the United States to limit Chinese influence over the strategically vital canal, which handles roughly 5% of global maritime trade. Rubio praised the ruling, saying it upheld transparency and accountability in the public interest.
China, however, has strongly opposed the decision, calling it an “act of bad faith” against CK Hutchison and signaling rising tensions over control and influence in key global trade routes.
The situation has heightened concerns among international shipping stakeholders, as disruptions involving Panama-flagged vessels could have broader implications for global supply chains and maritime commerce.