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China accuses US of plotting to seize Panama Canal

Panama's Supreme Court ruled in January that the licensing terms granted to Hong Kong-based CK Hutchison to operate two strategic ports at either end of the canal violated the country's constitution

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China has accused the US of plotting to seize the Panama Canal, from which a Hong Kong-based operator was recently expelled, the Global Times reported.

Beijing's position on the Panama Canal issue "is clear," Foreign Ministry spokesman Lin Jian said.

"The US's repeated stirring up of the issue only reveals its own intention to seize the canal," he said.

His remarks were in response to a question about US allegations that China is detaining Panamanian-flagged ships, which Washington has described as "punishment" Beijing's Panama claim.

Panama's Supreme Court ruled in January that the licensing terms granted to Hong Kong-based CK Hutchison to operate two strategic ports at either end of the canal violated the country's constitution.

The ruling came about a year after U.S. President Donald Trump publicly expressed concerns about China-related 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 more than $2 billion in damages.

The firm said Panama had not filed an initial response to the arbitration.

"Given that Panamanian-flagged vessels carry a significant share of U.S. container trade, these actions could have significant commercial and strategic implications for U.S. shipping," the maritime authority warned. U.S. Commission.

The Commission has the authority to investigate "whether the regulations or practices of foreign governments result in adverse conditions for shipping in the foreign trade of the United States".

Presidents Trump and Xi Jinping are expected to meet in Beijing on May 14 and 15 for a summit focused primarily on trade.

In February, Panama Ports Company filed a lawsuit with the International Chamber of Commerce in Paris, seeking at least $2 billion in damages.