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WASHINGTON , United States — The United States has accused China of detaining Panama-flagged ships after a takeover by Panamanian authorities of two ports previously controlled by a Chinese company.
The US Federal Maritime Commission said on Thursday that "China has now imposed a surge in detentions of Panama?flagged vessels in Chinese ports under the guise of port state control, far exceeding historical norms."
"These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison's port assets," it added in a statement.
A Panamanian court ruled in January that a contract that had allowed Panama Ports Company [PPC], a subsidiary of Hong Kong conglomerate CK Hutchison, to manage the Panama Canal ports of Balboa and Cristobal since 1997 was "unconstitutional."
Chinese foreign ministry spokesman Lin Jian said China's position on the port was "clear cut" when he was asked about the ship detentions at a press briefing on Friday.
"The US' repeated unwarranted comments only reveal its scheme to seize the canal," he said without directly addressing the accusations of ship detentions.
The court ruling in Panama is the latest legal move to ripple through the canal, which handles about 40 percent of US container traffic and five percent of world trade.
The Central American country has been swept up in broader tensions between Washington and Beijing, with US President Donald Trump claiming last year , without providing evidence , that China effectively runs the canal.
"Given that Panama?flagged ships carry a meaningful share of US containerised trade, these actions could result in significant commercial and strategic consequences to US shipping," the US maritime commission said.
According to the statement, the commission has the authority to investigate "whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States."
Presidents Trump and Xi Jinping are scheduled to meet on May 14 and 15 in Beijing for a summit largely focused on trade.
In February, Panama Ports Company filed a lawsuit at the International Chamber of Commerce [ICC] in Paris seeking at least $2 billion in damages.
