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Secretary of State Marco Rubio warned China that “the sovereignty of our hemisphere is non-negotiable” after the U.S. and regional allies accused Beijing of detaining Panama-flagged ships in a dispute tied to canal port management.
In a joint assertion with Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago, the U.S. stated China’s actions focusing on Panama-flagged vessels have been a “blatant try and politicize maritime commerce” and infringe on regional sovereignty, framing the dispute as a broader strategic check over management of one of many world’s most important industrial arteries.
Whereas the Panama dispute facilities on delivery detentions reasonably than a bodily blockade, critics more and more view it alongside battles over different strategic choke factors, such because the Strait of Hormuz, as a part of a widening contest over whether or not Beijing or Washington will form the foundations governing world commerce and power corridors.
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Containers and cranes on the Port of Balboa on the Pacific entrance of the Panama Canal in Panama Metropolis, Panama, Feb. 25, 2025.
The confrontation follows Panama’s Supreme Court choice earlier in 2026 to invalidate the authorized framework behind Hong Kong-based CK Hutchison’s long-held management of the Balboa and Cristobal terminals flanking the Panama Canal, a choke level that handles roughly 5% of world maritime commerce.
U.S. regulators have monitored practically 70 Panama-flagged vessels detained by Chinese language authorities since March 8, in accordance with Reuters — a surge American officers say seems designed to retaliate in opposition to Panama and stress world delivery.
“China has used Iran to destabilize the Center East. In impact, Iran has been China’s proxy,” China knowledgeable Gordon Chang instructed Fox Information Digital, arguing Beijing’s actions in Panama match a broader world sample during which China makes use of financial leverage, commerce stress and regional companions to develop affect whereas condemning comparable techniques from Washington.
Chang stated Beijing is now dealing with rising resistance because the U.S. more and more strikes not solely in opposition to China straight, but in addition in opposition to governments and geopolitical flashpoints he argues have strengthened Beijing’s hand.
“Trump apparently determined that he would counter this sly tactic by taking China’s proxies — Venezuela, Cuba, and Iran — off the board,” Chang stated.

An aerial view exhibits the port of Rodman in Panama Metropolis Jan. 30, 2026. (Martin Bernetti/AFP)
He additionally framed stress on Iran and threats to the Strait of Hormuz as half of a bigger strategic effort geared toward each Tehran and Beijing.
“Closing the Strait of Hormuz is a two-fer, ravenous Iran’s regime and shaking China’s already fragile financial system,” Chang stated. “Trump is utilizing power to reorder the world.”
Chang additionally accused Beijing of hypocrisy over commerce.
“China’s Communists invented hypocrisy. No one does hypocrisy higher than the Chinese language Communists,” he stated, arguing China lengthy benefited from a worldwide buying and selling system it more and more weaponized for geopolitical functions.
“The basic reality is that China began this cycle of motion and retaliation,” Chang stated. “If China had not threatened America, America wouldn’t have leaned on Panama. If America had not leaned on Panama, China wouldn’t have detained Panamanian vessels.”
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Two cargo ships enter the Miraflores Locks of the Panama Canal in Panama Metropolis on Jan. 22. (Martin Bernetti/AFP)
China has rejected accusations that it’s politicizing commerce, with its overseas ministry arguing U.S. criticism displays Washington’s personal strategic ambitions across the canal.
China’s overseas ministry known as the assertion on Wednesday “solely baseless and deceptive”, stated it will take steps to safeguard China’s pursuits in Panama, and accused america of politicizing ports, in accordance with Reuters.
“China additionally urges the related nations to not be deceived or exploited by malevolent forces,” added Lin Jian, a overseas ministry spokesperson.
Fox Information Digital reached out to the Chinese language Embassy in Washington, D.C., for remark however didn’t obtain a response in time for publication.
Reuters contributed to this text.