Washington, Apr 2 The US voiced concerns on Thursday over China's detention of Panama-flagged vessels, saying such "bullying" destabilizes supply chains, raises costs, and erodes confidence in the global trading system.
"The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying," Secretary of State Marco Rubio said in a post on X.
"The United States stands firmly with Panama and looks forward to increasing our economic and security cooperation with this important partner," the Department of State said in a statement.
The statement came after China reportedly detained Panama-flagged ships for inspections at Chinese ports.
US President Donald Trump is scheduled to visit China on May 14-15.
China's action came in the wake of Panama cancelling contracts of Hong Kong-based C K Hutchison to operate two port terminals near the Panama Canal on direction of the Supreme Court and transferred interim operations of the ports to Danish shipping giant A.P. Moller-Maersk and Switzerland-based Mediterranean Shipping Co.
"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 nation and vital partner for global commerce," a statement from the Department of State said.
It said detentions, delays, or other impediments to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system.
The statement said China's actions against Panama-flagged vessels follow the recent decision by Panama's independent Supreme Court regarding the Balboa and Cristobal terminals.
"This sovereign ruling upheld transparency, the rule of law, and held private operators accountable to the public interest. The judgment also makes clear that Panama is a reliable partner for international investment and business opportunities," it said.