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Panama, China clash at OAS over port dispute and ship detentions
🇵🇾 Paraguay /Economy & Trade

Panama, China clash at OAS over port dispute and ship detentions

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News From a news agency Context piece
  • Panama and China clashed at the Organization of American States (OAS) General Assembly over the judicial removal of a Chinese operator from two ports near the Panama Canal.
  • China reacted by detaining Panamanian-flagged merchant ships, prompting some vessels to leave Panama's registry, which is one of the world's largest.
  • Panama's president denounced the detentions, while China's representative accused Panama of having political motivations and urged it to protect Chinese companies' legitimate rights.

Panama and China engaged in a public dispute at the Organization of American States (OAS) General Assembly, stemming from Panama's decision to remove a Chinese operator from two key ports and China's subsequent retaliatory detentions of Panamanian-flagged vessels.

the detention of ships flying the flag of Panama... went from between 30 and 40 to 140 per month, without any correlation or justified cause

— José Raúl MulinoPanama's President denouncing the detentions of Panamanian-flagged ships in Chinese ports during the OAS General Assembly.

The conflict escalated when Panama's President José Raúl Mulino reported a significant increase in detentions of ships flying his country's flag in Chinese ports. He stated that detentions rose from 30-40 to 140 per month without justification, leading over 200 vessels to de-register from Panama's merchant marine, which is one of the largest globally with over 8,000 ships.

Panama to correct its errors and protect the legitimate and legal rights and interests of Chinese companies

— Xie FengChina's representative at the OAS urging Panama to resolve the port dispute.

The removal of Chinese conglomerate CK Hutchison from operating the Balboa and Cristóbal ports followed a ruling by Panama's Supreme Court declaring the concession and its automatic renewal unconstitutional. This decision came amid internal criticism and external pressure, including from then-U.S. President Donald Trump, who had raised concerns about Chinese influence.

if contracts could be ignored, market principles ignored, assets seized and operators expelled at any time, who would have the confidence to invest and seek cooperation?

— Xie FengChina's representative questioning the stability of investment in Panama.

During a session at the OAS, China's representative, Xie Feng, urged Panama to "correct its errors" and protect Chinese companies' rights. He questioned the stability of investment in Panama if contracts and market principles could be disregarded, suggesting the Supreme Court's decision had political motivations. Panama's Foreign Minister Javier Martínez-Acha defended the ruling, emphasizing Panama's democratic system and separation of powers, stating the concession renewal did not meet legal requirements.

the Supreme Court of Panama had a political motivation in its decision

— Xie FengChina's representative suggesting political reasons behind Panama's court ruling on the ports.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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