“The United States stands with Panama against any retaliatory actions against its sovereignty and will always support our partners in the face of bullying,” Secretary of State Marco Rubio posted on X on Thursday.
What kind of bullying is he talking about exactly? The commie Chinese kind, of course.
If you’ll recall, earlier this year, the Panamanian Supreme Court determined that two 25-year concessions that Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison Holdings, holds are unconstitutional. Those specific contracts, which began in 1997 and were renewed in 2021, allowed the company to operate ports on either end of the Panama Canal.
Panama framed it as a domestic matter. The United States considered it a win. China threw a little hissy fit and, apparently, plans to continue to do so. It called the ruling things like “absurd,” “pathetic,” and “shameful,” and it promised that Panama would “pay a heavy political and economic price.”
Related: China Suffers a Blow, and the U.S. Gets a Big Boost in Panama
Now we’re seeing those threats come to fruition in the form of an unreasonable number of inspections and detentions of vessels flying the Panamanian flag. Of 123 vessels detained in Chinese ports in March, 91 were from Panama. The remaining ships inspected were from a variety of other countries. Several of Panama’s ships were detained for multiple days.
Last week, the United States Federal Maritime Commission released a statement, saying that it was “closely monitoring how recent developments surrounding the Panama Canal terminals and China’s retaliatory actions against Panama are affecting global shipping conditions.”
“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,” the commission added. “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets. Given that Panama‑flagged ships carry a meaningful share of U.S. containerized trade, these actions could result in significant commercial and strategic consequences to U.S. shipping.”
On Thursday, the State Department also released a statement on the matter, supporting our Central American ally:
China’s recent actions against Panama-flagged vessels raise serious concerns about the use of economic tools to undermine the rule of law in Panama, a sovereign nation and vital partner for global commerce. Detentions, delays, or other impediments to the movement of vessels undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system.
China’s actions against Panama-flagged vessels follow the recent decision by Panama’s independent Supreme Court regarding the Balboa and Cristóbal terminals. This sovereign ruling upheld transparency, the rule of law, and held private operators accountable to the public interest. The judgment also makes clear that Panama is a reliable partner for international investment and business opportunities. The United States stands firmly with Panama and looks forward to increasing our economic and security cooperation with this important partner.
Here’s Rubio’s full statement on X:
China’s decision to detain or otherwise impede Panama-flagged vessels engaged in lawful trade destabilizes supply chains, raises costs, and erodes confidence in the global trading system. The United States stands with Panama against any retaliatory actions against its sovereignty…
— Secretary Marco Rubio (@SecRubio) April 2, 2026
It’s worth noting that Panama’s president, José Raúl Mulino, is a friend of the Donald Trump administration, and the relationship between our two countries has grown much stronger over the past year. Mulino was a guest at the Shield of the Americas summit in March. At that meeting, Trump promised every country in attendance that we would have its back when dealing with adversaries. While the talk was aimed at fighting the cartels and organized crime the plagues the region, there was an underlying message about keeping China out of the Western Hemisphere.
As Rubio said then, “The countries represented here today — all 12 of the leaders here — are allies, but they’re more than allies. They’re friends. At a time when we have learned that, often times, an ‘ally,’ when you need them, may or may not be there for you. These are countries that have been there for us, and these are leaders that are not just allies; they’re friends. And they’re always willing to work with and cooperate with the United States, and we’re grateful.”
So Panama knows we will support it. Though I don’t think this is exactly what Rubio has in mind, but it cracked me up:
Marco Rubio learning he has to reflag all the Panamanian cargo ships. pic.twitter.com/ItAX26l2Qk
— Stephen Green (@VodkaPundit) April 2, 2026
And speaking of China and my colleague Stephen Green, who posted the above meme, he wrote a great piece on China for his regular Thursday Essay. Check it out: What in the Actual Hell Is Going on in China?
Also, if you’re interested, one of my favorite journalists, Arturo McFields, continues documenting China’s losses in the Western Hemisphere. Here’s his latest for The Hill: China is losing ports, power, and presence in Latin America.
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