The US alleges China is detaining Panama-flagged vessels in retaliation for a port takeover, raising trade and strategic concerns.

WASHINGTON: The United States has accused China of detaining Panama-flagged ships following a Panamanian court’s decision to take over two key ports from a Chinese company.

The US Federal Maritime Commission stated that China has imposed a surge in detentions of such vessels in Chinese ports under the guise of port state control. It said these actions far exceed historical norms and appear intended to punish Panama.

The intensified inspections were carried out under informal directives, according to the commission’s statement. This follows a Panamanian court ruling in January that a contract allowing a CK Hutchison subsidiary to manage the ports of Balboa and Cristobal was unconstitutional.

Chinese foreign ministry spokesman Lin Jian addressed the allegations at a press briefing. “The US’ repeated unwarranted comments only reveal its scheme to seize the canal,” he said without directly addressing the ship detention accusations.

Lin stated China’s position on the port issue was “clear cut.” The Panama Canal handles about 40% of US container traffic and 5% of world trade.

The US maritime commission warned the actions could result in significant commercial and strategic consequences for US shipping. It noted Panama-flagged ships carry a meaningful share of US containerized trade.

The commission has authority to investigate foreign government practices unfavorable to US shipping. This dispute unfolds amid broader US-China tensions, with former President Donald Trump previously claiming China effectively runs the canal.

Panama Ports Company has filed a lawsuit at the International Chamber of Commerce in Paris seeking at least $2 billion in damages. US and Chinese leaders are scheduled to meet in Beijing for a trade-focused summit in May.

 The Sun Malaysia