Joint Statement Supporting Panama Amid Chinese Retaliation

The United States, alongside several allies in Latin America and the Caribbean, released a statement on Tuesday expressing support for Panama, as tensions rise due to China’s retaliatory actions. This follows the loss of control by Hong Kong-based CK Hutchison over two key ports in the Panama Canal.

In the statement, which included contributions from Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, the U.S. emphasized the importance of security in the Western Hemisphere. They reaffirmed that the freedoms within the region are not up for negotiation and indicated they are closely observing China’s dealings with Panamanian-flagged ships.

The Chinese Communist Party has been engaging in retaliatory measures against Panama for several weeks. This is a response to the Panama Supreme Court’s decision to cancel two significant contracts originally granted to CK Hutchison’s Panama Ports Company (PPC) back in 1997. The contracts allowed the firm, led by businessman Li Ka-shing, to control the Balboa and Cristobal ports, which manage a substantial portion of the canal’s traffic.

Earlier this year, Panama’s Supreme Court annulled these contracts as a result of a lawsuit from Auditor General Anel Flores. Following an in-depth investigation, it was found that PPC had violated several agreements, leading to criminal proceedings against the company in 2025 for the financial damage caused.

By late February, this ruling took effect, which allowed Panama’s conservative government under President José Raúl Murino to reclaim control of the ports and start the process of negotiating new, fairer contracts with other firms.

Since then, reports have indicated that China has been seizing and inspecting Panamanian vessels arbitrarily upon their arrival at Chinese ports, significantly disrupting Panama’s maritime trade. It’s estimated that around 75% of Panamanian ships face such measures when docking in China.

Part of the joint statement mentions that these actions, consequent to Panama’s court rulings, are a clear attempt to politicize maritime trade and infringe upon national sovereignty. It emphasizes that Panama plays a crucial role in the region’s maritime trade system and must be safeguarded from undue external influences.

Secretary of State Marco Rubio echoed these sentiments on social media, asserting that the sovereignty of nations in the hemisphere should never be compromised. He expressed deep concern regarding China’s economic pressures following the Supreme Court’s ruling and affirmed solidarity with Panama.

In response, Chinese Foreign Ministry spokesperson Lin Jian labeled the joint statement as “totally baseless” and accused the U.S. of attempting to control the Panama Canal while tarnishing the reputation of others. He insisted that the inspections of vessels were routine under Chinese law.

Lin stated that it is evident who has historically controlled the canal and disrespected Panama’s sovereignty. He accused the U.S. of creating false rumors and emphasized China’s commitment to defending its interests in the issue surrounding Panama’s ports.

Warnings have emerged from former Trump administration officials about how China’s actions against Panamanian ships could potentially disrupt global commerce. Additionally, Federal Maritime Commission Chair Laura DiBella remarked that the U.S. is keeping a close watch on the surge in seizures of Panamanian vessels, suggesting these incidents seem to be retaliatory due to the Supreme Court’s decision.