Rubio Backs Panama on Chinese Vessel Detentions

U.S. Secretary of State Marco Rubio expressed strong support for Panama on Thursday, criticizing China's increased detentions and inspections of Panama-flagged vessels as efforts to undermine the Latin American nation's sovereignty following a recent court ruling on key port operations near the Panama Canal.

The actions by Chinese authorities began in early March, shortly after Panama's Supreme Court in late January invalidated the legal basis for long-standing concessions held by Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings. The 1997 contracts, renewed in 2021, had granted the company rights to operate the Balboa terminal on the Pacific side and the Cristobal terminal on the Atlantic side of the canal, which facilitates about 5 percent of global maritime trade. The court deemed the concessions unconstitutional, allowing the Panamanian government to assume control and transition operations to new providers, including Denmark's A.P. Moller-Maersk and Switzerland's Mediterranean Shipping Company.

According to the U.S. Federal Maritime Commission, detentions of Panama-registered ships in Chinese ports have surged far beyond historical levels, with...