New York: China has called on Panama to protect its relationship with Beijing and avoid outside interference as tensions continue to grow over control of key ports near the Panama Canal.
Chinese Foreign Minister Wang Yi made the remarks during a meeting with Panamanian Foreign Minister Javier Martínez Acha on the sidelines of a United Nations Security Council gathering in New York. According to Chinese state media, Wang said that relations between China and Panama should not become a target of interference from a “third party,” a comment widely seen as a reference to the United States.
The latest diplomatic exchange comes at a time when the Panama Canal region has become an important point of rivalry between China and the United States. The canal is one of the world’s busiest shipping routes and plays a major role in global trade. Around five percent of international maritime trade passes through the canal every year.
The dispute mainly focuses on two ports located near the canal that were previously operated by CK Hutchison, a Hong Kong based company with major investments around the world. Earlier this year, Panama’s Supreme Court struck down the legal structure supporting the company’s port concession agreement.
Following the ruling, temporary operational control of the ports was handed to subsidiaries linked to Mediterranean Shipping Company and Danish shipping giant Maersk. International observers viewed the move as a shift away from Chinese influence and closer alignment with the United States and its allies.
China strongly criticized the court decision and expressed concern about the treatment of Chinese companies in Panama. Chinese officials argued that the ruling damaged investor confidence and unfairly targeted a company with long standing operations in the region.
In recent months, tensions have increased further after reports emerged that Panama flagged ships were facing additional inspections and delays at Chinese ports. Panama and some American officials suggested that the actions could be connected to the ongoing port dispute. China denied the accusations and stated that inspections carried out at its ports were routine and based on normal regulations.
The United States has also become more vocal about the situation. Washington and several Latin American countries recently issued a joint statement expressing support for Panama’s sovereignty and criticizing what they described as economic pressure from China. Beijing rejected those claims and accused the United States of turning the canal issue into a geopolitical conflict.
Panamanian President José Raúl Mulino has attempted to maintain balanced relations with both powers. He recently stated that Panama does not want to become caught in the middle of a larger struggle between China and the United States.
Panama established diplomatic relations with China in 2017 after ending ties with Taiwan. The relationship expanded quickly through trade and infrastructure cooperation, including projects connected to China’s Belt and Road Initiative. However, in recent years Panama has moved closer to Washington on several strategic issues, leading to signs of cooling relations with Beijing.
Political analysts believe the latest comments from China are aimed at preventing Panama from moving further toward the United States while also protecting Chinese business interests linked to the canal and regional shipping networks.
As competition between the world’s two largest powers continues to grow, many countries in Latin America are finding themselves under pressure to balance economic partnerships with China and political and security ties with the United States. Panama’s position has become especially important because of the strategic value of the canal, which remains a key gateway for international trade and global commerce.