OAS General Assembly: Panama and China Clash Over Ports and Ship Inspections
Foreign Minister Javier Martínez Acha pictured below, responds to the representative of China during the OAS session in Panama.
China and Panama (along with the United States) clashed over ports and ship inspections, but this confrontation occurred primarily as a series of diplomatic spats and statements in international forums rather than a direct, physical clash at the OAS (Organization of American States) General Assembly itself.
The friction centers on Panama’s Supreme Court voiding long-term concessions held by the Hong Kong-based conglomerate CK Hutchison to operate two strategic ports at either end of the Panama Canal. Following the takeover of these ports by US-linked operators, Chinese maritime authorities sharply escalated inspections and detentions of Panama-flagged vessels in Chinese ports. This dispute escalated into a broader geopolitical confrontation involving the following details:
- Diplomatic Confrontation: The United States and several Latin American nations released a joint statement criticizing China for “economic retaliation” against Panama. China’s Foreign Ministry countered by dismissing these allegations as “groundless” and accused the United States of trying to use the situation to seize control of the Panama Canal.
- Panama’s Balancing Act: Panama’s government has attempted to de-escalate the situation, treating it as a purely legal matter over contract sovereignty while acknowledging they are caught in the crossfire of US-China tensions. However, Panama’s Foreign Minister publicly demanded that China respect Panamanian sovereignty and not use the court ruling as leverage for economic coercion against their merchant fleet.
- Wider Institutional Statements: While the core clash has been heavily monitored by the U.S. Federal Maritime Commission, widespread criticism of China’s “bullying” tactics against Panamanian-flagged ships was voiced by various member states and officials on the sidelines of international and regional meetings.
An unusual diplomatic exchange took place this Tuesday, June 23, between the representative of China to the Organization of American States (OAS), Xie Feng, and the Foreign Minister of Panama, Javier Martínez Acha, during the dialogue of the permanent observers with the heads of delegation. “Unfortunately, the Supreme Court of Panama, in January of this year, issued a ruling taking the government possession of some ports. The assets can be taken and operated at any time. Who is going to trust us to invest and seek collaboration?” said the Chinese diplomat, who participated in the discussion as his country of China is a permanent observer.
