Panama and China meet in New York amid tensions over ports

The Foreign Minister of Panama and China will hold this Tuesday in New York the first high-level meeting between both governments since the worsening of the diplomatic crisis caused by the forced departure of a Chinese company from two ports near the Canal and the mass detention of Panamanian-flagged ships in Chinese terminals. According to EFE, the meeting takes place in a context of bilateral tension and international pressure. The Panamanian Ministry of Foreign Affairs confirmed that the meeting coincides with Martínez-Acha's visit to a special session of the United Nations (UN) Security Council, currently chaired by China, and highlighted that the meeting's agenda will be open to promote a "greater harmonization" of relations. EFE detailed that the migratory, commercial, and cultural ties between both countries date back 170 years, although today they are affected by the port dispute and the impact on maritime activity.

The exit of the Chinese conglomerate CK Hutchison from the operation of two ports near the Panama Canal in February marked a turning point. The decision came after an unappealable ruling by the Supreme Court of Panama, which declared unconstitutional the concession granted more than a quarter of a century ago. According to complainants cited by EFE, the agreement was unfavorable to the Panamanian State, which led to years of legal claims.

United States intervened in the conflict, with then-President Donald Trump warning about a supposed “malignant” influence of China in the Canal area due to the presence of CK Hutchison. Trump even considered the agreement reached in early 2025 for the sale of Panamanian ports to a consortium led by BlackRock, a US financial sector giant, an achievement of his administration. EFE reported that the operation, which was part of a global transaction for more than forty terminals and almost 23,000 million dollars, was blocked by the Chinese government.

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In response, Beijing warned that Panama would pay "a high price" for expelling CK Hutchison and the company initiated international arbitration against the Panamanian State for at least 2,000 million dollars. Meanwhile, Chinese authorities intensified the detention of Panamanian-flagged vessels in their ports. Panama administers one of the largest merchant fleets in the world, so these incidents have generated concern in the global shipping sector.

According to data collected by EFE, the detentions have not resulted in the confiscation of vessels or their cargo, although they have caused delays and additional controls. “The issue of detentions has indeed increased exponentially. A lot. It's not normal. The other registries, especially those that compete with Panama, have detentions far below. That's not a coincidence. That's not accidental. That carries an intrinsic political message”, declared President José Raúl Mulino on April 30, according to the agency.

Despite the escalation, Mulino announced on May 7 that tensions with China were beginning to decrease and he was open to dialogue. "Recently we have faced the increase in detentions of ships flying our flag in the ports of the People's Republic of China. Thank God and reason, that tension that escalated strongly has begun to decrease and the messages, however faint they may be, of coming to conversations regarding what they wish to raise to the Republic of Panama, I consider them positive," said the Panamanian president, quoted by EFE.

The meeting in New York could change the course of bilateral relations, in a scenario where diplomacy, maritime trade, and the geopolitical pressures of the United States and China converge on a strategic channel of global reach.