Rubio accuses China of pressuring Panama-flagged vessels after canal dispute
Kyiv • UNN
The US accuses Beijing of delaying Panamanian vessels after CK Hutchison's port contracts were canceled. China denies pressure and demands compensation.
US Secretary of State Marco Rubio stated that China is pressuring Panama-flagged vessels after a Panamanian court's decision to cancel port contracts of the Hong Kong company CK Hutchison near the Panama Canal. Reuters reports this, writes UNN.
Details
According to Rubio, this involves delays and increased inspections of Panamanian vessels in Chinese ports. The US believes this could be Beijing's response to Panama's decision to annul the concession for managing the ports of Balboa and Cristobal on both sides of the canal. The American Federal Maritime Commission also previously stated that it is observing a sharp increase in detentions of such vessels in China.
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, a sovereign state and a vital partner for global trade.
The dispute erupted after a court decision in Panama
In January, Panama's Supreme Court ruled unconstitutional the legal basis of the 1997 concession that allowed a subsidiary of CK Hutchison to operate two strategic ports near the Panama Canal. After this, the company initiated international arbitration and is demanding at least $2 billion in compensation.
China rejected Washington's accusations and stated that the US itself is trying to strengthen control over the canal.
The US's repeated wrongful accusations only demonstrate their attempt to take control of the canal.
Rubio also warned that any delays of vessels in such a situation would harm global trade and supply chains.
Delays, detentions, or other impediments to vessel movement undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system.