US says China actions against Panama-flagged vessels raise ‘serious concerns’

US Secretary of State Marco Rubio said Thursday that China's actions targeting vessels flying Panama's flag raise "serious concerns" about the use of economic tools and could affect global trade and supply chains.

"China's recent actions against Panama-flagged vessels raise serious concerns about the use of economic tools to undermine the rule of law in Panama, a sovereign nation and vital partner for global commerce," Rubio said in a statement.

Rubio said detentions, delays and other impediments affecting such vessels "undermine the stability of global supply chains, increase costs for businesses and consumers, and erode confidence in the international trading system."

He said China's actions followed a ruling by Supreme Court of Panama on the Balboa and Cristobal terminals that he said upheld transparency and accountability.

"The United States stands firmly with Panama and looks forward to increasing our economic and security cooperation with this important partner," Rubio said.

The US Federal Maritime Commission (FMC) said last week it is closely monitoring a surge in detentions and inspections of Panama-flagged vessels in China since early March that appear linked to a dispute over control of key Panama Canal ports following a court ruling against Hong Kong-based CK Hutchison.

Beijing rejected the US accusations and accused Washington of seeking control over the canal.

Chinese Foreign Ministry spokesperson Lin Jian said Friday that recent US claims "only expose its own intention to seize the canal," according to Chinese state media, following Panama's decision to revoke operating rights from a Hong Kong-based firm.