Rubio Warns China Actions Against Panama-Flagged Ships Raise 'Serious Concern' Over Rule of Law

U.S. Secretary of State Marco Rubio said recent actions by China against Panama-flagged vessels raise "serious concern" about the use of economic measures to undermine the rule of law, as detentions of ships increase following a legal dispute over control of key ports near the Panama Canal.

"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," Rubio said in a statement, adding that delays and inspections "undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system."

Panamanian authorities have acknowledged a rise in detentions and inspections of vessels flying their flag in Chinese ports, as Infobae reports. These actions have not necessarily involved confiscation but have resulted in delays and additional scrutiny, affecting maritime operations and trade flows.

The dispute follows a January ruling by Panama's Supreme Court that invalidated a long-standing concession granted to a Hong Kong-based company to operate the Balboa and Cristóbal terminals, located at opposite ends of the Panama Canal. The decision allowed the Panamanian government to assume control of the ports and appoint new operators.

According to the Federal Maritime Commission, detentions of Panama-flagged vessels in China have risen sharply since early March, reaching levels that "far exceeded historical norms." Commissioner Laura DiBella said the inspections appeared to be carried out under informal directives and "intended to punish Panama after the transfer of Hutchison's port assets."

The ports dispute comes amid broader geopolitical tensions. U.S. officials have raised concerns about Chinese influence over strategic infrastructure near the canal, which handles roughly 5% of global maritime trade. The Panamanian government has denied foreign interference and reaffirmed that the canal remains under national control.

Rubio said the court's decision "upheld transparency, the rule of law, and held private operators accountable to the public interest," adding that it demonstrates Panama is "a reliable partner for international investment and business opportunities." He also expressed U.S. support for Panama's sovereignty and signaled interest in expanding economic and security cooperation.

Chinese authorities have not publicly responded to the U.S. criticism. However, the dispute has already affected broader commercial dynamics, including ongoing arbitration proceedings by the Hong Kong-based operator and scrutiny of a planned multibillion-dollar ports transaction.