Panamanian President José Raúl Mulino on Wednesday strongly rejected China’s warning that Panama would pay a “heavy price” after the Supreme Court invalidated Hong Kong-based CK Hutchison’s concession to operate two strategic ports on the Panama Canal. The court ruled the contract unconstitutional, citing disproportionate favoritism toward the company.
The dispute has become a geopolitical flashpoint between Washington and Beijing. The canal handles about 40% of U.S. container traffic and 5% of global trade worth $270 billion annually. President Trump has threatened to reclaim the waterway, claiming China wields excessive influence, while Secretary of State Marco Rubio told Mulino that Trump views Chinese control as a treaty violation.
