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China's Maritime Lawfare Targets Panama-Flagged Ships
Confirmed
In Short: China has intensified its maritime lawfare, detaining Panama-flagged ships at an unprecedented rate since March 8, according to the U.S. Federal Maritime Commission.
By April, China was responsible for 91 percent of all detentions of Panama-flagged ships in the Asia-Pacific region, a move that Panama’s Supreme Court had earlier ruled unconstitutional.
The court decision on January 30 ended the legal basis for operating the two terminals of the Panama Canal, which moves more than 40 percent of all U.S. container traffic.
CK Hutchison, a company involved in the canal’s operations, has rejected the takeover and initiated arbitration proceedings through the International Chamber of Commerce.
Panama’s comptroller’s audit later revealed that unpaid dues and improperly granted tax exemptions had cost the country approximately $1.3 billion.
Taiwan has also accused China of engaging in lawfare, using legal instruments to create new facts on the ground and to conjure up territorial and maritime claims.
Taiwan's Mainland Affairs Council stated that repeating an illegal act does not make it lawful and that China's actions do not help it gain international recognition.
Chinese Foreign Minister Wang Yi has defended China's actions, stating that the coast guard patrols are necessary to safeguard the “legitimate rights” of Chinese fishermen and national sovereignty.
Taipei has complained that Chinese coast guard vessels have harassed commercial ships by demanding details of their point of origin and destination, and by claiming jurisdiction over the waters.
China's Law on Promoting Ethnic Unity and Progress requires Chinese nationals to uphold national unification, signaling a broader strategy to consolidate maritime claims and extend jurisdiction beyond its own borders.
The Philippines and 13 other countries have issued a joint statement describing the award as “final, legally binding and definitive” on maritime entitlements and claims, explicitly opposing China’s assertions in the South China Sea.
Experts argue that the United States should adopt a coordinated counter-lawfare strategy to preserve freedom of navigation, deter aggression, and uphold international law in the Arctic.
What's confirmed
- By April, China was responsible for 91 percent of all detentions of Panama-flagged ships in the Asia-Pacific region, a move that Panama’s Supreme Court had earlier ruled unconstitutional.
- The court decision on January 30 ended the legal basis for operating the two terminals of the Panama Canal, which moves more than 40 percent of all U.S. container traffic.
- CK Hutchison, a company involved in the canal’s operations, has rejected the takeover and initiated arbitration proceedings through the International Chamber of Commerce.
- Panama’s comptroller’s audit later revealed that unpaid dues and improperly granted tax exemptions had cost the country approximately $1.3 billion.
- Taiwan has also accused China of engaging in lawfare, using legal instruments to create new facts on the ground and to conjure up territorial and maritime claims.
- Taiwan's Mainland Affairs Council stated that repeating an illegal act does not make it lawful and that China's actions do not help it gain international recognition.
- Chinese Foreign Minister Wang Yi has defended China's actions, stating that the coast guard patrols are necessary to safeguard the “legitimate rights” of Chinese fishermen and national sovereignty.
- Taipei has complained that Chinese coast guard vessels have harassed commercial ships by demanding details of their point of origin and destination, and by claiming jurisdiction over the waters.
- China's Law on Promoting Ethnic Unity and Progress requires Chinese nationals to uphold national unification, signaling a broader strategy to consolidate maritime claims and extend jurisdiction beyond its own borders.
- The Philippines and 13 other countries have issued a joint statement describing the award as “final, legally binding and definitive” on maritime entitlements and claims, explicitly opposing China’s assertions in the South China Sea.
- Experts argue that the United States should adopt a coordinated counter-lawfare strategy to preserve freedom of navigation, deter aggression, and uphold international law in the Arctic.
What's still developing
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- The unprecedented rate in detentions began on March 8, reportedly following what the U.S. Federal Maritime Commission has called “informal directives” intended to “punish” Panama-flagged ships. (China’s ambassador to the United States has denied that Panamanian ships are being targeted and says that the increased inspections are due to fishing boat collisions.) By April, China was responsible for 91 percent of all detentions of Panama-flagged ships across the Asia-Pacific region.
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- For Panamanians, however, the dispute around the canal continues.
- Chinese Foreign Minister Wang Yi delivers a speech on China-ASEAN relations at the ASEAN Secretariat in Jakarta, Indonesia, on July 11, 2022.
- What happens when the Arctic starts to look like the South China Sea?
- This is no more evident than in the increasing scope and volume of Russian and Chinese lawfare affecting the region.