Envoy refutes Panama's port check accusations

China's permanent observer to the Organization of American States, Xie Feng, has refuted Panama's accusations over inspections on vessels at Chinese ports, saying the measures are routine safety checks carried out in accordance with Chinese law and international conventions.

Speaking at the Dialogue with Permanent Observers of the Organization of American States in Panama on Tuesday, Xie, who also serves as Chinese ambassador to the United States, said several Panama-flagged merchant and fishing vessels had been involved in consecutive collisions in Chinese waters since the beginning of the year, resulting in deaths and missing persons.

"Out of a sense of responsibility for maritime safety, China has conducted port state control inspections on incoming vessels in accordance with Chinese laws and international conventions, which do not target any specific country or flag and are fully legitimate," he said.

Panama recently complained about what it described as an increase in inspections of Panama-flagged vessels, alleging that some were being detained at Chinese ports, suggesting the measures could be linked to a dispute over port operations at the Panama Canal.

Addressing the issue, Xie said a Chinese company operating ports at both ends of the canal had complied with laws since obtaining the concession in 1997 and had contributed to Panama's economic development.

Cooperation between the two sides had proceeded smoothly over the past three decades, with no major disagreements and no complaints lodged against the operator, CK Hutchison.

However, the Supreme Court of Panama ruled in January that Chinese control of the ports was unconstitutional and voided CK Hutchison's operating license.

The Panamanian government subsequently appointed US-based subsidiary APM Terminals, part of Maersk, and Mediterranean Shipping Company's Terminal Investment Ltd as interim operators.

CK Hutchison has strongly rejected the court ruling, accused Panamanian authorities of unlawfully seizing property, and launched an international arbitration case.

Politically driven

"Anyone clear-eyed can see this is politically driven," Xie said. "If contracts could be disregarded, market principles ignored, assets taken over and operators forced out at any time, who would have the confidence to invest and seek cooperation?"

The Panama Canal handles about 5 percent of global maritime trade and roughly 40 percent of US container traffic.

Last year, CK Hutchison agreed to sell non-port assets worth $2.3 billion to a consortium led by US investment company BlackRock. The move came after Washington threatened to take control of the canal if the Chinese company continued operating the ports.

Xie urged Panama to correct its mistakes and protect the legitimate and lawful rights and interests of Chinese businesses.