Chinese ambassador refutes Panama accusations

Xie Feng, Chinese ambassador and permanent observer to the OAS, refuted Panamanian accusations about inspections on incoming vessels at Chinese ports.

While attending the Dialogue with Permanent Observers of the Organization of American States in Panama on Tuesday, Xie said that since the start of 2026, Panama-flagged ships have been involved in several collisions between merchant or fishing vessels in Chinese waters, resulting in a number of people killed and missing.

Out of a sense of responsibility for maritime safety, Xie said, China has conducted port state control inspections on incoming vessels in accordance with Chinese laws and international conventions, according to a statement released by the Chinese Embassy.

Panama had complained recently about an increase in inspections of Panama-flagged vessels that it alleged were being detained in Chinese ports, which it suggested was linked to a dispute over operations at the Panama Canal.

Over the past three decades, cooperation between the two sides regarding the canal had been smooth, with no major disagreements, and no complaints raised about the Chinese enterprise, CK Hutchison, that had operated the ports at both ends of the Panama Canal. Unfortunately, the Supreme Court of Panama issued a ruling in January stating that Chinese control of the ports was unconstitutional, and voided CK Hutchison’s license to operate the ports.

The court transferred interim operations of the ports to A.P. Moller-Maersk and Mediterranean Shipping Co.

CK Hutchison said that it "strongly disagrees with the determination" and had taken case to international arbitration.

"Anyone clear-eyed can see this is politically driven. If contracts could be disregarded, market principles ignored, assets taken over and operators forced out at any time, who would have the confidence to invest and seek cooperation?" Xie asked, according to the statement.

About 5 percent of world maritime trade and 40 percent of US container traffic pass through the Panama Canal.

Last year, CK Hutchison negotiated a $2.3 billion sale of its non-port assets to a consortium led by BlackRock. That decision followed threats from the US government that the United States would seize control of the canal if the Chinese company continued to operate it.

Scott Kennedy, a senior advisor at the Center for Strategic and International Studies, told CNBC that it appeared to be "a simple contest for dominance in Latin America", with the US trying to push against Chinese trade interests.

"The most likely scenario is a drawn-out legal fight in multiple jurisdictions, along with substantial political and economic pressure imposed by both Beijing and Washington," Kennedy told CNBC.

Xie urged the Panamanian side to correct its mistakes and protect the legitimate and lawful rights and interests of Chinese businesses, the Embassy statement said.