ALWAGHT- China has warned Panama of "heavy prices" following a court's annulment of a major port deal, a $23 billion move seen as part of US-China strategic competition.
China has issued a strong warning to Panama, threatening "heavy prices" after the Panamanian Supreme Court annulled a major port contract held by CK Hutchison, a Hong Kong-based conglomerate. The Hong Kong and Macau Affairs Office condemned the ruling as "absurd" and vowed to defend the rights of Chinese enterprises.
The court's decision voided a longstanding contract for terminals at both ends of the Panama Canal, citing constitutional violations. This move is viewed as a strategic gain for the United States amid broader competition over global trade infrastructure. The ruling also places a pending $23 billion global sale of CK Hutchison's port assets, including these terminals, in jeopardy.
In its statement, China's office accused "some country" of using bullying tactics and asserted that Panama had "succumbed to hegemonic power." It warned that Panama would face serious political and economic consequences if it persisted on this course. Meanwhile, US officials, including the Chair of the House Select Committee on China, celebrated the ruling as a "win for America."
The subsidiary operating the ports stated the decision contradicted the established legal framework of its decades-long operations. The situation highlights the escalating US-China rivalry over critical maritime hubs, with the Panama Canal serving as a focal point of geopolitical and economic contention.
