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China denies retaliating against Panama ships, accuses Washington of canal grab

China denied on Friday that it had intensified inspections of Panama-flagged vessels in retaliation for Panama’s decision to strip a Hong Kong-based conglomerate of port…

By Samantha Johnson / March 27, 2026
China denied on Friday that it had intensified inspections of Panama-flagged vessels in retaliation for Panama’s decision to strip a Hong Kong-based conglomerate of port concessions at both ends of the Panama Canal, accusing Washington of seeking to seize control of the strategic waterway.
During the daily press briefing at the Chinese Ministry of Foreign Affairs in Beijing, spokesman Lin Jian charged that the US had made “repeated wrongful allegations” about the inspections that exposed Washington’s “true intention” to take over the canal, dismissing them as groundless.

Lin’s remarks came one day after the US Federal Maritime Commission issued an alert warning that Beijing had ramped up port inspections of Panama-flagged vessels beyond historical norms.

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Panama’s Supreme Court declared the concession unconstitutional in January, and the government took control of both terminals in late February, designating US-linked operators APM Terminals and Terminal Investment Limited as interim administrators for 18 months.

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Panama President Mulino rejects US claims of Chinese influence in Panama Canal

Panama President Mulino rejects US claims of Chinese influence in Panama Canal

The commission warned on Thursday that the inspections appeared to follow informal directives that could amount to reprisals. Panama-flagged ships carry a significant share of US container trade, the commission noted, raising concerns about supply chain disruptions.

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