Trump Envoy Warns China’s Sea Power Threatens All Nations

U.S. Ambassador to the United Kingdom Warren Stephens delivered a stark warning to the International Maritime Organization (IMO) Council on July 7, declaring that China is systematically weaponizing maritime power as an instrument of political coercion — and that Beijing’s punitive response to Panama after a court ruling should serve as a warning to every nation. Speaking at the IMO in his capacity as U.S. Permanent Representative, Stephens cited China’s aggressive reaction to Panama’s Supreme Court decision to revoke port concessions held by Hong Kong-based CK Hutchison as a clear example of the threat facing global maritime order.

The Warning at the IMO

Stephens told the IMO Council that Beijing has pursued an aggressive strategy of acquiring port concessions and infrastructure worldwide “not simply for commercial gain, but to extend its strategic reach and weaponize that access against sovereign nations,” according to Fox News. He emphasized that China currently builds more than half of the world’s ships and dominates production of ship-to-shore cranes and shipping containers, giving it enormous leverage over global supply chains.

“What happened to Panama is a warning to every nation in this room,” Stephens said, as The Epoch Times reported. “When a country allows a foreign power or its proxies to control its ports, it does not simply accept a commercial arrangement. It accepts a vulnerability.”

The Panama Dispute

The crisis traces back to January 2026, when Panama’s Supreme Court ruled that CK Hutchison’s 25-year concession to operate the Balboa and Cristóbal terminals — situated at opposite ends of the Panama Canal — was unconstitutional. The Panama Canal handles roughly 40% of all U.S. container traffic, making it one of the world’s most strategically vital trade corridors.

China’s response was swift and multifaceted. State-owned enterprises froze new projects in Panama, COSCO Shipping Lines suspended services at Balboa, and — most alarmingly — detentions of Panama-flagged vessels in Chinese ports surged from 20 in February 2026 to 93 in March 2026, a more than 300% increase, according to Diálogo Américas. Chinese customs also intensified inspections of Panamanian exports like coffee and bananas, while CK Hutchison filed for $2 billion in arbitration compensation.

China’s Response

Beijing has rejected U.S. accusations as hypocritical. Lin Jian, a spokesperson for China’s Foreign Ministry, pointed to America’s own history in the region, asking: “Who occupied the Panama Canal for a long time, invaded Panama with its military, and arbitrarily trampled on its sovereignty and dignity?” as reported by the Associated Press. Lin added that “the one who has politicized and securitized the issue of ports is the United States.”

Chinese Ambassador to the OAS Xie Feng defended China’s port state control inspections as routine safety measures, noting that Panama-flagged ships had been involved in multiple collisions in Chinese waters. He argued at an OAS dialogue in June that the contract revocation was politically driven, stating: “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?” according to the Chinese Embassy in the U.S.

The Greenland Connection

Stephens’ IMO warning is closely linked to President Donald Trump’s renewed push for U.S. control over Greenland, which he raised at the NATO summit in Ankara. Trump argued that Greenland — strategically positioned between the Arctic and North Atlantic — is “surrounded by China ships and Russian ships” and that Denmark cannot adequately defend it. Denmark has rejected the proposal, with Prime Minister Mette Frederiksen stating Greenland is “not for sale” and announcing a $2.1 billion Arctic defense package.

A Pattern of Coercion

Analysts point to a consistent pattern of Chinese economic pressure tactics. Similar measures were deployed against Guatemala in 2024 after it strengthened ties with Taiwan, Lithuania in 2021 following the opening of a Taiwanese representative office, and Australia in 2020 amid broader diplomatic tensions. The CNBC report on the dispute noted that analysts expect the standoff to drag on, potentially straining U.S.-China relations already frayed by tariff tensions and disputes over Taiwan.

What’s Next

The dispute carries significant implications for global supply chains, Arctic security, and the future of Chinese Belt and Road investments in Latin America. Stephens urged IMO member states to scrutinize deals allowing foreign state-linked entities to operate critical port infrastructure, warning that “a free and open ocean is not guaranteed. It must be defended.” Panama, caught between the two superpowers, continues to seek de-escalation. President José Raúl Mulino has emphasized Panama’s desire for respectful relations with all nations, even as the country faces economic pressure from Chinese actions while relying on U.S. support for its sovereignty. The coming months will reveal whether the IMO takes concrete action and whether other nations follow Panama’s lead in reviewing Chinese-held port concessions.