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US-China dispute on Panama flares back up

Apr 29, 2026, 6:26pm EDT
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A ship transits the Panama Canal
Enea Lebrun/Reuters

The spat between the US and China over Panama’s canal ports flared back up Wednesday, weeks before a high-stakes meeting of the countries’ leaders.

Washington’s top diplomat accused China of a “blatant attempt to politicize maritime trade” after Beijing briefly detained dozens of Panama-flagged ships in Chinese ports. The US earlier this month said China was “bullying” vessels in retaliation for Panama’s seizure of two canal ports from a Hong Kong-based company’s subsidiary earlier this year.

The Trump administration has made dominance in the Western Hemisphere a foreign policy priority, and Panama in particular has been caught in the middle.

Both superpowers are hunting for leverage ahead of the meeting next month; China recently blocked a major cross-border tech deal.

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