{"id":1301,"date":"2026-08-04T04:38:08","date_gmt":"2026-08-04T04:38:08","guid":{"rendered":"https:\/\/nationallogisticspost.com\/?p=1301"},"modified":"2026-08-04T04:38:08","modified_gmt":"2026-08-04T04:38:08","slug":"china-makes-panama-pay-for-saying-no","status":"publish","type":"post","link":"https:\/\/nationallogisticspost.com\/?p=1301","title":{"rendered":"China Makes Panama Pay for Saying No"},"content":{"rendered":"
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S<\/span>ince March 2026, China has subjected Panama-flagged vessels to a comical number of inspections and detentions far beyond the norm. Chinese ports <\/span>detained<\/span> 431 Panamanian vessels between March and June following Panama\u2019s removal of Hong Kong\u2019s CK Hutchison subsidiary Panama Ports Company from the Balboa and <\/span>Crist\u00f3bal<\/span> terminals on either end of the Panama Canal. The Federal Maritime Commission <\/span>says<\/span> the \u201cretaliatory inspections \u2026 appear intended to punish Panama\u201d for its removal of CK Hutchison.<\/span><\/span><\/p>\n

Read more Defending \u2018Adequate\u2019 Humans Against AI<\/a><\/p>\n

CK Hutchison had previously operated the two ports which sit beside the canal since 1997, but Panama\u2019s Supreme Court <\/span>ruled<\/span> in February that the contract law that granted CK Hutchison the operation of the ports was unconstitutional. The argument made was that the arrangement improperly restricted Panama\u2019s sovereign control over its resources.\u00a0(RELATED: To Secure the Panama Canal, Reinstitute the Monroe Doctrine)<\/strong><\/span><\/span><\/p>\n

CK Hutchison is nominally a private Hong Kong conglomerate \u2014 a large business made up of smaller independent companies. Why, then, did the Chinese state treat the loss of the Panamanian concessions as an attack on China?\u00a0(RELATED: <\/strong><\/span>China Poses a Severe Threat in Panama and Leaves the US With No Choice.<\/strong>)<\/strong><\/p>\n

After the ruling by the Supreme Court, China\u2019s Hong Kong and Macau Affairs Office <\/span>castigated<\/span> the decision as \u201cabsurd,\u201d \u201cshameful and pathetic,\u201d and vowed \u201cto defend the interests of Chinese firms.\u201d The office further warned that if the Panamanian authorities \u201cinsist on having their own way \u2026 heavy prices both politically and economically will surely be paid!\u201d<\/span><\/span><\/p>\n

China would appear to be retaliating rather heavily against the entire country\u2019s ship registry as a response, but there is a deeper idea at play with implications beyond container terminals and shipping registries.<\/span><\/p>\n

Panama <\/span>was once<\/span> one of the willing participants in Beijing\u2019s campaign for global economic influence: Xi Jinping\u2019s Belt and Road Initiative. In 2017, the country severed its long-standing diplomatic ties with Taiwan and established formal state relations with the Chinese Communist Party. The promise of massive infrastructure investments and government-to-government loans from joining the Belt and Road was too sweet to pass up.<\/span><\/span><\/p>\n

Read more The Spectator P.M. Ep. 235: We Need To Be Concerned for Ariana Grande<\/a><\/p>\n

Eight years later, however, Panama became the first Latin American country to <\/span>withdraw<\/span> from the BRI under heavy pressure from the Trump administration to cut ties with China. The partnership\u2019s meager returns also contributed to the decision, <\/span>according<\/span> to Panamanian President Jos\u00e9 Ra\u00fal Mulino.<\/span><\/span><\/p>\n

While the Balboa and <\/span>Crist\u00f3bal terminals were not Belt and Road projects, Beijing\u2019s response to Panama shows the same assumption underlying the initiative. China markets its investments as voluntary, \u201cmutually beneficial\u201d partnerships; China delivers <\/span>access<\/span> to loans and infrastructure development in exchange for commercial access in the participating countries. China treats that commercial access as an entitlement, a foothold to be maintained via economic pressure. When Panama removed CK Hutchison from the canal terminals, Beijing found an unrelated pressure point in the cargo fleet of Panama and began squeezing.<\/span><\/span><\/p>\n

The Trump administration <\/span>leaned on<\/span> Panama in 2025 to reduce China\u2019s influence around the canal because of security concerns. But by answering the 2026 Panamanian court <\/span><\/span> with hundreds<\/span> of ship detentions, Beijing demonstrated precisely why Chinese influence and control of the Canal is a security concern.\u00a0<\/span><\/p>\n

China has, to a degree, shown its coercive hand in the Panama situation. Other countries beginning to realize that the Belt and Road\u2019s promised \u201cmutually beneficial\u201d partnership may instead be akin to a Trojan horse within their economies should take note. The road out may come with steep tolls.<\/span><\/p>\n

Read more Why Republicans May Defy Midterm History<\/a><\/p>\n

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The Cult of Andrew Tate: Modernity\u2019s \u2018Men Without Chests\u2019<\/strong><\/p>\n

Kyle Kuzma Calls a Foul on Mamdani<\/strong><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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