Panama reports fewer vessels held in China amid canal control frictions Last updated: May 08, 2026 | 03:46 The Panama Canal is an artificial 82km waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal that cuts across the Isthmus of Panama facilitates maritime trade as it greatly reduces the time for ships to travel between the Atlantic and Pacific oceans. Pixabay Panama's President Jose Raul Mulino on Thursday said tensions with China had "reduced", after a fraught period during which Beijing was accused of detaining Panamanian-flagged ships in Chinese ports. The United States and China accuse each other of seeking to control the Panama Canal, a vital trade link between the Atlantic and Pacific oceans. Following a decision by the Panamanian Supreme Court in January, Panama took control of two of the canal's ports previously operated by a Hong Kong-based conglomerate.…