ISTANBUL
China on Friday rejected recent US accusations over the Panama Canal, saying it will 'firmly defend' its rights.
Foreign Ministry spokesperson Mao Ning said the US claims of Beijing's alleged actions against Panama-flagged vessels are “groundless,” and blamed Washington for distorting facts.
"The US accusation is groundless and confuses right and wrong," Mao told reporters in Beijing, adding: "The US’ repeated wrongful allegations only reveal that it seeks to take over the Panama Canal."
She accused Washington of undermining the neutrality of the waterway and destabilizing global supply chains through “unilateral bullying and coercive actions."
Reaffirming Beijing’s position, Mao said China will “firmly defend its rights and interests,” underscoring growing tensions between the world’s two largest economies over strategic global trade routes.
Beijing's reaction came after US Secretary of State Marco Rubio on Thursday claimed 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.
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.”
The US Federal Maritime Commission (FMC) said last week it was 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.
Panama's Supreme Court ruled in January that license terms granted to the Hong Kong-based company CK Hutchison to operate two strategic ports at either end of the canal violate the country's constitution.
The decision came roughly a year after US President Donald Trump publicly raised concerns over Chinese-linked infrastructure near the waterway, describing it as a potential security threat.
CK Hutchison's Panama Ports Company has since filed a lawsuit against Panama at the International Chamber of Commerce Court, seeking damages of over $2 billion. The firm has said Panama failed to file an initial response to the arbitration.