Panama Defies China Over Canal Port Row

President José Raúl Mulino has “strongly” rejected threats from Beijing after Panama evicted Hong Kong-based CK Hutchison from two strategic ports on the Panama Canal.

The diplomatic clash began after Panama’s Supreme Court declared the company’s contract unconstitutional, citing a “disproportionate bias” that harmed the national treasury.

The ruling follows intense pressure from U.S. President Donald Trump, who had threatened to seize the vital waterway over concerns regarding Chinese influence.

While Washington applauded the court’s decision, China’s Hong Kong and Macao Affairs Office warned that Panama would pay a “heavy price” both politically and economically if it did not “correct its course.”

Panama (News Central TV) — Panama defies China over canal port row. Credit: CNN

President Mulino defended the move as an exercise of judicial independence and the rule of law. In the interim, the Panamanian government has appointed the Danish firm Maersk to manage the Balboa and Cristobal terminals.

Meanwhile, Beijing has accused the U.S. of a “Cold War mentality,” framing the legal dispute as a forced takeover of the canal’s operations.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.