China says Panama ties should not be subject to third-party interference

China’s Foreign Minister Wang Yi reiterated during a UN Security Council meeting in New York that relations between China and Panama must remain free from external interference. The statement came amid escalating tensions over the future of two major container terminals—Balboa and Cristobal—operated by CK Hutchison, a subsidiary of Hong Kong-listed CK Hutchison Holdings, near the Panama Canal, which manages 5% of global maritime trade. Panama’s Supreme Court declared in late January that the legal framework governing a 1997 concession and its 2021 extension for CK Hutchison’s terminals was unconstitutional. The ruling followed months of pressure from the United States to reduce Chinese influence near the canal. China and Hong Kong authorities condemned the decision as an ‘act of bad faith,’ while CK Hutchison accused Panamanian authorities of unlawfully seizing its property. The dispute stems from CK Hutchison’s nearly 30-year operation of the terminals, which handle critical trade routes. In response to the Supreme Court’s ruling, the company launched an international arbitration case against Panama, seeking damages exceeding $2 billion. The arbitration process is ongoing, with CK Hutchison arguing that the cancellation of its concessions violated international agreements. Wang Yi’s remarks at the UN meeting underscored China’s stance that the dispute should be resolved through dialogue rather than external intervention. The terminals, though separate from the canal’s operations, play a vital role in global logistics, making the situation a focal point for geopolitical tensions in Latin America. Panama’s government has yet to formally respond to the arbitration claim, but the Supreme Court’s decision signals a shift in policy toward reducing foreign control over strategic infrastructure. Meanwhile, the U.S. has continued to monitor the situation closely, given the canal’s significance to global trade and security.