China frequently detains ships after Cheung Kong Hutchison Ports ruling; Panama demands respect for sovereignty

Reuters reported that Panama's Supreme Court ruled in January this year, invalidating the legal basis for Cheung Kong Hutchison to operate two key terminals near the Panama Canal through its Panamanian subsidiary, prompting the Panamanian government to cancel the relevant concession. Panamanian Foreign Minister Javier Martinez-Acha stated at a meeting in Asuncion, the capital of Paraguay, that he hopes the increase in ship detentions in March will return to normal. He pointed out: "Due to this ruling, our merchant fleet, the most important fleet in the world, has seen an increase in inspections and detentions of ships flying our national flag in ports of the People's Republic of China." Martinez-Acha also said: "Panama... respects the judicial sovereignty of all countries, and we only ask other countries to treat us in the same way." The ship detention incident has become one of the latest friction points in the US-China struggle for international trade influence, with Panama and its strategically important Panama Canal, which handles about 5% of global maritime trade, at the core of the dispute. The United States and several other countries have expressed concern over the ship detentions, and the Panamanian Ministry of Foreign Affairs has expressed its gratitude. The U.S. Federal Maritime Commission (FMC) stated at the end of March that it is closely monitoring the increasing detentions of Panamanian-flagged ships by China. U.S. Secretary of State Marco Rubio also stated this month that the matter has caused serious concern. China has expressed opposition to the ruling on Cheung Kong Hutchison's port concession, calling it an "act of bad faith." Cheung Kong Hutchison, which has operated port businesses locally for nearly 30 years, has sued Panamanian authorities for illegal asset seizure and initiated international arbitration, seeking over $2 billion in compensation. (Compiled by Hsu Rui-cheng) 1150409