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In a firm message to China, Secretary of State Marco Rubio emphasized that the sovereignty of the Western Hemisphere is not open to negotiation. This statement comes after the United States, alongside regional partners, accused Beijing of detaining ships flying the Panamanian flag as part of a larger conflict over control of canal ports.
In collaboration with Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, the U.S. released a joint statement condemning China’s actions against Panama-flagged vessels. They described these moves as a “blatant attempt to politicize maritime trade” and a violation of regional sovereignty. This situation is being framed as a crucial test of strategic influence over one of the globe’s vital commercial passages.
Although the conflict over Panama involves the detention of ships rather than a physical blockade, it is increasingly being compared to other geopolitical hotspots like the Strait of Hormuz. Observers see it as part of a larger struggle between Beijing and Washington over who will set the rules for global trade and energy routes.
The backdrop to this confrontation is a decision by Panama’s Supreme Court in early 2026, which nullified the legal framework that had allowed Hong Kong-based CK Hutchison to control the Balboa and Cristobal terminals. These terminals sit astride the Panama Canal, a key maritime chokepoint that facilitates about 5% of global trade.
Containers and cranes stand at the ready at the Port of Balboa, located at the Pacific entrance of the Panama Canal in Panama City, as seen on February 25, 2025. This strategic location has become a focal point in the evolving geopolitical tensions.
U.S. regulators have monitored nearly 70 Panama-flagged vessels detained by Chinese authorities since March 8, according to Reuters — a surge American officials say appears designed to retaliate against Panama and pressure global shipping.
“China has used Iran to destabilize the Middle East. In effect, Iran has been China’s proxy,” China expert Gordon Chang told Fox News Digital, arguing Beijing’s actions in Panama fit a broader global pattern in which China uses economic leverage, trade pressure and regional partners to expand influence while condemning similar tactics from Washington.
Chang said Beijing is now facing growing resistance as the U.S. increasingly moves not only against China directly, but also against governments and geopolitical flash points he argues have strengthened Beijing’s hand.
“Trump apparently decided that he would counter this sly tactic by taking China’s proxies — Venezuela, Cuba and Iran — off the board,” Chang said.
An aerial view shows the port of Rodman in Panama City Jan. 30, 2026. (Martin Bernetti/AFP)
He also framed pressure on Iran and threats to the Strait of Hormuz as part of a larger strategic effort aimed at both Tehran and Beijing.
“Closing the Strait of Hormuz is a two-fer, starving Iran’s regime and shaking China’s already fragile economy,” Chang said. “Trump is using energy to reorder the world.”
Chang also accused Beijing of hypocrisy over trade.
“China’s Communists invented hypocrisy. Nobody does hypocrisy better than the Chinese Communists,” he said, arguing that China long benefited from a global trading system it increasingly weaponized for geopolitical purposes.
“The elemental truth is that China started this cycle of action and retaliation,” Chang said. “If China had not threatened America, America would not have leaned on Panama. If America had not leaned on Panama, China would not have detained Panamanian vessels.”
Two cargo ships enter the Miraflores Locks of the Panama Canal in Panama City on Jan. 22. (Martin Bernetti/AFP)
China has rejected accusations that it is politicizing trade, with its foreign ministry arguing U.S. criticism reflects Washington’s own strategic ambitions around the canal.
China’s Foreign Ministry called the statement on Wednesday “entirely baseless and misleading”, said it would take steps to safeguard China’s interests in Panama, and accused the United States of politicizing ports, according to Reuters.
The Chinese Embassy in Washington, D.C., spokesperson Liu Pengyu told Fox News Digital that, “Chinese competent authorities conducted routine inspections of vessels in accordance with laws and regulations. The allegations are completely unfounded and merely a distortion of facts. It is the United States that has framed normal affairs concerning relevant terminals as issues about politics and security, making pretenses and slandering others with rumors. China’s position on the Panamanian ports issue is clear and will firmly defend its legitimate rights and interests. We urge relevant countries not to be blinded and utilized by those with ill intentions.”
Reuters contributed to this article.