{"text":[[{"start":9.35,"text":"Panamanian 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."}],[{"start":20.35,"text":"The clash escalated in February when the Central American country, under heavy US 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."}],[{"start":36.150000000000006,"text":"China then dramatically increased detentions of vessels flagged to Panama, which has the world’s largest ship registry. Beijing stopped four times more Panama-flagged ships in the four months to the end of June than in the year before, according to China Maritime Safety Administration data. China says the detentions are related to safety issues. "}],[{"start":56.25000000000001,"text":"Hundreds of ships appear to have responded by leaving the registry, according to data from Lloyd’s List Intelligence. The number of ships flagged to Panama fell by 15 in March, 60 in April, 181 in May and 281 in June, the data shows."}],[{"start":72.75,"text":"Panama’s President José Raúl Mulino said in June there was no justification for the detentions, but that the countries were now trying to solve the situation. Officials begin meetings in Beijing on Thursday, including on improving co-operation, renewing their maritime agreement and technical exchanges on port-state control."}],[{"start":91.65,"text":"Between March and June, Chinese authorities reported 431 detentions of Panama-flagged ships, compared to 98 in the same period in 2025. The detentions dropped in June from May but were still four times higher than the year earlier."}],[{"start":109.15,"text":"Panama’s share of overall detentions increased from 33.7 per cent between January and May 2025 to 70.6 per cent in the same period this year."}],[{"start":120.65,"text":"The detentions were made “to ensure safety and order of maritime traffic”, China’s foreign ministry said this week. “China lawfully and responsibly conducts port-state control inspections as required by international regulations.” It added that Panamanian-flagged vessels made up just 20 per cent of ships in Chinese ports but accounted for 50 per cent of accidents and deaths."}],[{"start":142.6,"text":"Ship detentions involve holding the vessel in port and preventing it from going to sea until safety, crew or environmental issues are resolved."}],[{"start":151.35,"text":"The canal, through which around 6 per cent of annual global maritime freight passes, has been a focus of US President Donald Trump’s efforts to exert control over the western hemisphere. He began threatening to “take back” the canal before he returned to the presidency last year, arguing China had too large a foothold in the waterway."}],[{"start":172.29999999999998,"text":"Beijing condemned the Panamanian Supreme Court’s ruling against CK Hutchison, saying Panama would “pay a heavy price” for its decision. The Hong Kong conglomerate has filed a $2bn arbitration claim against Panama under the rules of the International Chamber of Commerce."}],[{"start":189.54999999999998,"text":"Some Chinese leasing companies are now asking shipowners to reflag away from Panama as a condition of new financing, maritime security agency Ambrey said in May."}],[{"start":199.54999999999998,"text":"The Panamanian registry’s ship numbers peaked at more than 7,500 vessels last August."}],[{"start":205.74999999999997,"text":"The Iran war and the effective closure of the Strait of Hormuz have made the canal increasingly important for global trade, with its daily transits climbing by around 20 per cent after the conflict broke out at the end of February. It is particularly critical to Asian traders seeking cargoes from the US Gulf coast."}],[{"start":224.74999999999997,"text":"As Panama aims to find a way out of the spat, US officials have continued attacking Beijing over the detentions. Trump reiterated this month that China was trying to take over the canal and the US ambassador to the UK, Warren Stephens, said China was trying to punish Panama."}],[{"start":241.74999999999997,"text":"“What happened to Panama is a warning to every nation in this room,” he told the International Maritime Organization."}],[{"start":248.44999999999996,"text":"Additional reporting by Isaac Castella-McDonald"}],[{"start":259.04999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784191565_4440.mp3"}