China warned Panama on Tuesday about “heavy prices” after Panama’s Supreme Court annulled CK Hutchison’s contract to operate two ports at the Panama Canal. The Chinese government criticized the court’s decision as “absurd” and pledged to protect the interests of Chinese companies. The ruling, which ended a contract held since the 1990s by CK Hutchison’s Panama Ports Company, was based on constitutional issues and public interest concerns. This outcome is perceived as favorable for the U. S. amid growing tensions between the U. S. and China regarding control of global trade.
The court decision could disrupt CK Hutchison’s plan to sell 43 ports globally for $23 billion. The Chinese office stated that the ruling breached trust and harmed the rights of Hong Kong enterprises and warned that Panama would face political and economic consequences if it continued down this path. U. S. officials welcomed the ruling, seeing it as a victory for America. Meanwhile, U. S. President Trump expressed a desire to reclaim influence over the Panama Canal due to concerns over Chinese presence.
With information from Reuters
