Papers please: China raises pressure on Panama amid canal row with ship inspection wave

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China has increased inspections of Panama-flagged vessels entering its ports, escalating tensions between the two countries. This action follows Panama's annulment of Hong Kong-based CK Hutchison's operating rights in the Panama Canal in late January. The increased inspections, conducted under port state control, are viewed as a pressure tactic amid the ongoing dispute over the port concession, which had been in place since the 1990s. Panama's decision to revoke the concession came after US concerns about Chinese influence over global shipping. Panama has since granted temporary control of the ports to Maersk and MSC. As Panama is a major ship registry, these increased inspections by China could have significant global implications for the shipping industry.
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