Full Breakdown
U.S. and Regional Allies Issue Joint Statement Condemning Chinese Pressure on Panama-Flagged Shipping
4/29/2026, 6:59:51 AM
Joint Statement Condemns Chinese Pressure on Panama
On 28 April 2026 the United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago issued a statement backing Panama’s sovereignty and accusing China of “targeted economic pressure” after Panama’s Supreme Court annulled CK Hutchison’s concession to run Balboa and Cristóbal terminals. The statement linked the ruling to a surge in inspections and detentions of Panama-flagged vessels in Chinese ports.
Background and Key Actors
Panama’s Supreme Court voided a 1997 concession that gave CK Hutchison control of Balboa (Pacific) and Cristóbal (Atlantic) terminals, which flank canal handling 5 percent of trade. APM Terminals and Terminal Investment Limited took over. United States, Panama, China and CK Hutchison are involved; Hutchison seeks US$2 billion in arbitration.
Detention Data in Chinese Ports
The Loadstar reported that in March 2026 91 of 123 ship detentions under the Tokyo MOU regime in Chinese ports involved Panama-flagged vessels—a sharp rise from earlier months. Federal Maritime Commission Chair Laura DiBella warned China was using such inspections to pressure Panama, though reasons for each detention were not disclosed.
Official Statements & Responses
Joint statement called Panama a pillar of maritime system and warned external pressure threatens hemisphere. Chinese officials rejected claim, calling removal of Hong-Kong-linked operator a sovereign Panama decision. Panama’s government launched arbitration against CK Hutchison, asserting court ruling is lawful.
Criticism & Opposition
Analysts say spike in Chinese detentions uses safety inspections as leverage, not compliance. CK Hutchison calls Panamanian seizure unlawful and frames arbitration as compensation for damages. No Chinese spokesperson has justified inspections, leaving pressure’s legitimacy in doubt.
Conflicting Reports & Gaps
All sources agree on detention numbers, but none disclose the precise safety or regulatory reasons for each case, obscuring the balance between legitimate inspections and political motives. Chinese policy statements explaining the alleged “targeted economic pressure” are absent, limiting assessment of intent.
Verbatim Quotes
- “We are monitoring with vigilance China’s targeted economic pressure and the recent actions that have affected Panama-flagged vessels,” — Joint Statement, United States and five Latin American and Caribbean partners
- “Panama is a pillar of our maritime trading system, and as such must remain free from any undue external pressure.” — Joint Statement, United States and five Latin American and Caribbean partners
- “Any attempts to undermine Panama’s sovereignty are a threat to us all.” — Joint Statement, United States and five Latin American and Caribbean partners
- “Through our renewed commitment to peace, security, and Hemispheric cooperation, we remain dedicated to facing all threats to ensure the Americas remain a region of freedom, security, and prosperity,” — Joint Statement, United States and five Latin American and Caribbean partners
What’s Next
Panama’s arbitration against CK Hutchison proceeds as United States and regional allies continue monitoring Chinese maritime actions. Diplomatic talks aim to address surge in Panama-flagged detentions, and negotiations on concession framework for Balboa and Cristóbal terminals are planned for 2027.
