Why Panama Canal Sparked War of Words Between China and the Americas
China has increased inspections of Panama-flagged vessels following Panama's Supreme Court decision to revoke port concessions held by a subsidiary of Hong Kong-based CK Hutchison. Several Latin American countries and the United States issued a joint statement accusing China of using economic pressure to politicize maritime trade. China denies the claims, calling the inspections routine and blaming the U.S. for securitizing the issue.
- ▪Panama’s Supreme Court nullified port contracts held by Panama Ports Company, a subsidiary of CK Hutchison, citing irregularities.
- ▪In March, 91 of the 123 ships detained by Chinese port authorities were flagged in Panama, up from 19 in February.
- ▪Five Latin American and Caribbean countries joined the U.S. in condemning China’s actions as economic coercion.
- ▪China suspended new investments in Panama and pressured shipping firms like COSCO, Maersk, and MSC to halt operations at the affected ports.
- ▪The Panama Canal handles about 5% of global seaborne trade and is critical for U.S. container traffic and naval operations.
Opening excerpt (first ~120 words) tap to expand
By Micah McCartneyChina News ReporterShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.China has touched sensitivities in Latin America after ramping up detentions of Panamanian ships in what is widely viewed as retaliation over the seizure of two Panama ports previously leased to Hong Kong-based CK Hutchison.Five countries in Latin America and the Caribbean joined the United States on Tuesday in issuing a joint statement, saying they were monitoring "China’s targeted economic pressure and the recent actions that have affected Panama-flagged vessels.""These actions—following the decision of Panama’s independent Supreme Court regarding the Balboa and Cristóbal terminals—are a…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Newsweek.
Discussion
0 commentsMore from Newsweek
