China Again Refutes US Claims of Maritime Coercion Against Panama
The war of words continues between Chinese and U.S. officials who claim that China is using its maritime and economic strengths to coerce Panama and other nations. China’s Foreign Ministry spokesperson cited statistics and data to refute the U.S. claims that ships flying the flag of Panama are being targeted and coerced with Port State inspections and detentions after Panama canceled CK Hutchison’s port concession.
U.S. officials continue to assert that China is targeting Panama-flagged ships in what the U.S. Ambassador to the United Kingdom and the International Maritime Organization called a “deeply troubling example” of countries weaponizing maritime commerce. Ambassador Warren Stephens, on July 7, in his first address to the IMO, called for the maritime organization to increase its attention to the issue.
“China uses its maritime and economic power to coerce, to intimidate, and to punish those who assert their sovereign rights,” the Ambassador alleged. He said the IMO “cannot afford to ignore China’s systematic effort to use maritime power.” He asserted the evidence is clear and growing.
Panama’s President Jose Raul Mulino also spoke out in June about the issue, citing what he said was a "sharp rise in abnormal inspections and detentions." He told the Organization of American States there was “no technical or safety justification” for the increase in detentions.
Asked about the issue, China’s Foreign Ministry spokesperson Lin Jian highlighted statistics during his daily presentation on July 13. He repeated an earlier Chinese defense that said it is “lawfully and responsibly conducting port state inspections as required by international regulation on visiting vessels.”
Lin asserted that Panama-flagged vessels have “registered multiple casualties meeting or exceeding the statutory accident classification threshold in Chinese waters.” He said Panama-flagged ships were having incidents “more frequently than vessels of any other flag state.”
Panama-flagged vessels were said to make up so far in 2026 less than 20 percent of all foreign vessels calling at Chinese ports. However, Lin contended that they have caused around 50 percent of the accidents and consequent deaths and missing persons. China has asserted that Panama-flag vessels have had accidents with coastal fishing boats, citing it as the reason for the inspections.
The Chairman of the U.S. Federal Maritime Commission, Laura DiBella, also spoke on the issue last week. She has suggested that the FMC would get involved, as Panama-flagged ships transport a meaningful amount of U.S. commerce.
DiBella said that the laws the FMC administers empower it to investigate whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States. She says the FMC has within its power the implementation of remedial measures.
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An analysis released last week by Lloyd’s Intelligence showed that vessels were transferring out of the Panama flag registry after the increase in inspections and detentions. It said that, despite an apparent decline in the number of inspections and detentions that China was conducting, ships are moving to the flags of the Bahamas and the Marshall Islands.
Chinese officials have said the inspections will continue to ensure the safety of the vessels’ operations.
