Secretary of State Marco Rubio warns China over Panama ship detentions, asserting hemisphere sovereignty is non-negotiable

(SeaPRwire) –   Secretary of State Marco Rubio issued a warning to China stating that “the sovereignty of our hemisphere is non-negotiable” following accusations by the U.S. and its regional allies that Beijing had detained Panama-flagged vessels amid a dispute related to control over canal ports.

In a joint declaration alongside Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, the U.S. asserted that China’s measures targeting Panama-flagged ships constituted a “blatant effort to politicize maritime commerce” and violate regional sovereignty, casting the disagreement as a wider strategic showdown over dominance of one of the globe’s most vital commercial routes.

Although the Panama conflict focuses on the detention of ships rather than a physical blockage, critics are more and more likely to group it with struggles over other key strategic bottlenecks—like the Strait of Hormuz—as part of an expanding competition to determine whether Beijing or Washington will set the rules for global trade and energy pathways.

This standoff comes after Panama’s Supreme Court ruled earlier in 2026 to nullify the legal structure supporting Hong Kong-headquartered CK Hutchison’s long-standing oversight of the Balboa and Cristobal terminals that border the Panama Canal—a bottleneck responsible for moving approximately 5% of the world’s maritime trade.

Per Reuters, U.S. regulators have tracked close to 70 Panama-flagged ships held by Chinese authorities since March 8—a spike that U.S. officials claim seems intended to retaliate against Panama and put pressure on the global shipping industry.

“China has utilized Iran to destabilize the Middle East. In fact, Iran has served as China’s proxy,” China specialist Gordon Chang told Digital, contending that Beijing’s moves in Panama align with a wider global trend where China employs economic clout, trade coercion, and regional allies to grow its influence while criticizing comparable strategies from Washington.

Chang noted that Beijing is currently encountering mounting pushback as the U.S. more frequently takes action not just against China directly, but also against governments and geopolitical hotspots that he asserts have bolstered Beijing’s position.

“Trump seemingly made the decision to counter this cunning strategy by neutralizing China’s proxies—Venezuela, Cuba, and Iran,” Chang stated.

He also characterized pressure on Iran and threats to the Strait of Hormuz as components of a larger strategic initiative targeting both Tehran and Beijing.

“Shutting down the Strait of Hormuz is a win-win for two goals: starving Iran’s regime and destabilizing China’s already vulnerable economy,” Chang remarked. “Trump is leveraging energy to reshape the global order.”

Chang further accused Beijing of being hypocritical regarding trade.

“China’s Communists created hypocrisy. No one practices hypocrisy more effectively than the Chinese Communists,” he stated, asserting that China has long reaped benefits from a global trading system which it has increasingly turned into a weapon for geopolitical ends.

“The fundamental truth is that China initiated this cycle of action and retaliation,” Chang said. “If China had not posed a threat to America, the U.S. would not have pressured Panama. If the U.S. had not pressured Panama, China would not have held Panamanian ships.”

China has dismissed claims that it is politicizing trade, with its foreign ministry contending that U.S. criticism mirrors Washington’s own strategic aspirations regarding the canal.

Per Reuters, China’s Foreign Ministry labeled Wednesday’s statement “completely unfounded and deceptive,” announced it would take measures to protect China’s interests in Panama, and accused the U.S. of politicizing port operations.

“China also urges the relevant nations not to be misled or taken advantage of by malicious forces,” added Lin Jian, a spokesperson for the Foreign Ministry.

Digital contacted the Chinese Embassy in Washington, D.C., to request comment but did not get a reply before the article went to press.

Reuters provided input for this article.