The U.S. secretary of state Marco Rubio on Thursday expressed support for Panama after China was accused of detaining Panama-flagged ships. In a recent statement, the secretary of state said China’s recent actions against Panama-flagged vessels raise serious concerns, linking them to a Panamanian Supreme Court ruling regarding the Balboa and Cristóbal terminals.
The US has accused China of detaining Panama-flagged ships in response to a takeover by Panamanian authorities of terminals at the ports of Balboa and Cristóbal previously run by a Hong Kong-based company.
“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, a sovereign nation and vital partner for global commerce. Detentions, delays, or other impediments to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system,” Rubio said in a release on April 2.
The allegations, first raised by the U.S. Federal Maritime Commission and amplified by secretary of state Marco Rubio on Thursday, add another point of tension between the US and China.
Rubio added, “China’s actions against Panama-flagged vessels follow the recent decision by Panama’s independent Supreme Court regarding the Balboa and Cristóbal terminals. This sovereign ruling upheld transparency, the rule of law, and held private operators accountable to the public interest. The judgment also makes clear that Panama is a reliable partner for international investment and business opportunities.”
Earlier this year, a top court in Panama issued a ruling declaring the concession granted to Panama Ports Company S.A. (PPC) to operate the ports at the Panama Canal “unconstitutional” – terminals it had managed under the concession contract since 1997.
Hong Kong’s CK Hutchison Holdings Limited (CKHH) rejected the ruling and intensified its legal response to the takeover by the Panama State of the port operations of the company’s subsidiary, Panama Ports Company, S.A. (PPC).
PPC, which operated the Balboa and Cristóbal port terminals, said it had expanded its claims against Panama based on damages that have now escalated beyond $2bln. The company supplemented its claims in a filing on March 24, 2026.
CK Hutchison described the takeover of the terminals as “unlawful” in a statement issued last month.
Meanwhile, the U.S. Federal Maritime Commission said it was closely monitoring a surge in detentions of Panama-flagged vessels in Chinese ports.
These intensified inspections, according to the authority, appear intended to punish Panama after the transfer of Hutchison’s port assets.
Chinese foreign ministry spokesman Lin Jian said China’s position on issues related to the Panama Canal ports was “clear” when he was asked about the ship detentions at a regular press briefing.
“The U.S.’s repeated wrongful allegations only reveal its attempt to take control of the canal,” he told reporters.
China has opposed the ruling, saying that “it is inconsistent with the law of Panama that approved the concession,” while the US reaffirmed its support for Panama and highlighted plans to strengthen economic and security cooperation.
