US warns China over Panama Canal-linked ships

Washington: The United States warned China that actions targeting Panama-flagged vessels threaten a key global trade route and could drive up costs for businesses and consumers.

US Secretary of State Marco Rubio said China’s recent actions against Panama-flagged ships raise “serious concern” about the use of economic tools to undermine the rule of law in Panama.

“China’s recent actions against Panama-flagged vessels raise serious concerns about the use of economic tools to undermine the rule of law in Panama,” Rubio said in a statement.

He said detentions, delays and other impediments to vessel movement “undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system.”

The remarks follow reports of increased inspections and detentions of Panama-flagged vessels at Chinese ports. Panamanian authorities have acknowledged a rise in scrutiny, which has led to delays and disruptions in maritime operations, though not necessarily seizures.

The dispute comes after a recent ruling by Panama’s Supreme Court on the Balboa and Cristóbal terminals. The court invalidated a long-standing concession granted to a Hong Kong-based company and allowed the government to assume control of the ports and appoint new operators.

Rubio said the court’s decision “upheld transparency, the rule of law, and held private operators accountable to the public interest.” He added that it shows Panama is “a reliable partner for international investment and business opportunities.”

The United States also reaffirmed its support for Panama’s sovereignty. Rubio said Washington “stands firmly with Panama” and looks forward to expanding economic and security cooperation with the country.

The Panama Canal is a critical artery for global trade. It handles roughly 5 per cent of global maritime commerce. Any disruption to vessel movement can ripple across supply chains, affecting energy, manufacturing and consumer goods.

US officials have increasingly raised concerns about China’s influence over strategic infrastructure near the canal.

IANS