Panama officials are heading to Beijing in a bid to end a dispute that has seen hundreds of vessels leave its shipping registry after a major step‑up in detentions by Chinese authorities. The clash escalated in February when the Central American country, under heavy U.S. pressure to crack down on China’s presence in the Panama Canal, took control of two ports run by Hong‑Kong‑based CK Hutchison after its Supreme Court invalidated the company’s concessions. China then dramatically increased detentions of vessels flagged to Panama, which has the world’s largest ship registry.

According to China Maritime Safety Administration data, 431 Panama‑flagged ships were detained between March and June, compared with 98 in the same period last year. Panama’s share of overall detentions rose from 33.7 % in early 2025 to 70.6 % this year, while the number of ships leaving the registry fell sharply: 15 in March, 60 in April, 181 in May and 281 in June.

The issue has drawn U.S. criticism, with former President Donald Trump and ambassador Warren Stephens accusing China of trying to take over the canal, a key artery that now handles around 6 % of global freight. Panamanian shipowners have responded by re‑flagging away from Panama, reducing the country’s registry from a peak of 7,500 vessels complies with the trend of ships leaving the flag.

The meetings in Beijing aim to improve cooperation, renew the maritime agreement and explore technical ==> exchanges on port‑state control, hoping to restore confidence and reduce detentions.