ASIATODAY.ID, PANAMA CITY – Panama has taken a bold and highly consequential step that is reverberating across the global geopolitical landscape.
The country’s Supreme Court has annulled the long-standing concession held by Hong Kong–based CK Hutchison to operate two strategic ports at the Panama Canal, triggering an angry response from Beijing.
China swiftly warned that Panama would pay a “heavy price” for the decision. Through its Hong Kong and Macao Affairs Office, Beijing condemned the ruling as “unreasonable,” “shameful,” and “deeply regrettable,” vowing to defend the interests of Chinese and Hong Kong companies.
The canceled concession was held by Panama Ports Company, a CK Hutchison subsidiary that has operated container terminals at both the Pacific and Atlantic entrances of the Panama Canal since the 1990s.
The canal is one of the world’s most critical maritime chokepoints, linking Asian manufacturing hubs with markets in the Americas and Europe.
Panama’s Supreme Court ruled that the contract violated constitutional principles and undermined the public interest—a legal judgment that carries far-reaching political implications.
The move comes amid intensifying U.S.–China rivalry over control and influence along key global trade routes.
The decision was openly welcomed in Washington. John Moolenaar, chairman of the U.S. House Select Committee on China, described the ruling as a “victory for America,” reinforcing perceptions that Panama’s action aligns with broader U.S. strategic interests in the region.
Beijing, however, rejected that narrative, accusing unnamed hegemonic powers of exerting pressure and intimidation to force smaller nations into compliance.
Without directly naming the United States, Chinese officials claimed Panama had “voluntarily submitted” to external influence.
Beyond geopolitics, the ruling threatens to derail CK Hutchison’s planned US$23 billion asset sale, which includes 43 ports in 23 countries, to a consortium led by BlackRock and Mediterranean Shipping Company (MSC)—a deal in which the Panama Canal ports were considered crown-jewel assets.
China’s Hong Kong and Macao Affairs Office said the court decision ignored basic facts, eroded trust, and seriously violated the legitimate rights and interests of Chinese and Hong Kong enterprises.
The statement added that China possesses sufficient means to safeguard what it called a fair and orderly international economic and trading system.
The warning was blunt: should Panama persist on its current path, severe political and economic consequences would be unavoidable.
With a single court ruling, Panama has thrust itself into the center of a global power struggle—balancing national sovereignty against economic risk, and asserting independence amid a deepening contest between the world’s two largest powers.
The bold move has been made. The fallout is just beginning. (AT Network)
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