Panama’s President Jose Raul Mulino has strongly rejected China’s warning that the country would pay a “heavy price” following the Supreme Court’s decision to invalidate contracts allowing Hong Kong-based CK Hutchison to operate two key ports on the Panama Canal.
Background of the Port Concession
The dispute centers on the ports of Cristobal on the Atlantic side and Balboa on the Pacific side, which CK Hutchison had managed since 1997 through its Panama Ports Company subsidiary. The concession was extended in 2021 for 25 years but came under scrutiny after former US President Donald Trump threatened to take control of the canal, citing strategic and economic concerns.
Rule of Law and Judicial Independence
President Mulino emphasized that Panama is committed to the rule of law and that its judiciary operates independently of the government. “We strongly reject threats against our country and respect the decisions of our courts,” Mulino said on social media, noting that the Panamanian Foreign Ministry would issue an official statement and adopt necessary actions.
China Responds
China’s Hong Kong and Macao Affairs Office (HKMAO) criticized the court’s ruling, describing it as “absurd” and “shameful” while warning of potential political and economic consequences. Beijing’s Foreign Ministry also pledged to defend the “legitimate rights and interests” of Chinese companies, accusing the US of maintaining a “Cold War mentality.”
Temporary Management by Maersk
In response to the court decision, Panama has appointed Danish shipping company Maersk to temporarily manage the canal ports until a new concession is awarded. The move underscores the ongoing geopolitical tension in Latin America, where the US and China compete for influence over strategic trade routes.
Strategic Importance of the Panama Canal
The Panama Canal remains a critical artery for global trade, connecting the Atlantic and Pacific Oceans. The annulment of CK Hutchison’s contracts highlights the delicate balance between national interests, international law, and foreign investment in strategic infrastructure. As reporting Al Jazeera
