Panamanian President José Raúl Mulino has strongly rejected threats from China following the cancellation of a major port concession held by a Hong Kong-based company operating along the strategically vital Panama Canal.
Mulino responded after Chinese officials warned that Panama would pay a “heavy price” following the removal of CK Hutchison, a Hong Kong-based firm, from operating two key ports connected to the canal. The move came after Panama’s Supreme Court ruled the concession unconstitutional, effectively ending the company’s control over the facilities.
In a statement posted on social media, Mulino firmly dismissed Beijing’s warning, emphasizing that Panama is a country governed by the rule of law and respects the independence of its judiciary. He stressed that the court’s ruling was made independently of government influence and must be upheld.
The Panamanian president also confirmed that the country’s Foreign Ministry will issue an official statement and take appropriate diplomatic measures in response to the escalating tensions.
The dispute has quickly become a symbol of the intensifying geopolitical and economic rivalry between the United States and China, particularly regarding influence over critical global trade routes. The situation escalated after U.S. President Donald Trump reportedly pressured Panama to cancel contracts involving Chinese-linked companies, warning that Washington could consider taking control of the canal and even raising the possibility of military action.
Last week, Panama’s Supreme Court declared CK Hutchison’s concession unconstitutional, a decision that China condemned as “absurd” and “shameful,” further escalating diplomatic tensions between Beijing and Panama City.
The Panama Canal remains one of the world’s most crucial maritime trade routes, and any disruption or geopolitical conflict surrounding its management is likely to have significant global economic and security implications.
