The Tamesis
Panama’s Supreme Court ruled late Thursday that a Chinese company’s holding of port concessions at both ends of the Panama Canal violated the small country’s constitution.
Ruling resultPanama’s auditor general said after an audit that there were irregularities in the 25-year extension granted in 2021 to Panama Ports, a subsidiary of Hong Kong’s CK Hutchison Holdings.
The ruling follows moves by the Trump administration to block China’s influence on the strategic waterway.
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Panamanian officials claimed that China had no influence over the operation of the canal, but U.S. Secretary of State Mario Rubio was dispatched to tell local authorities that the United States viewed the operation of the port as a matter of national security.
The White House insists China has no ability to interfere with the canal’s operations, and President Trump has said the waterway should be returned to U.S. control.
Ports of Panama was unhappy with the ruling and told The Associated Press it had not been notified of the decision and that the concession “was the result of a Transparency International tender.”
According to the Associated Press, the company issued a statement saying that the ruling “lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who directly and indirectly depend on the port’s activities, as well as the rule of law and legal certainty in the country.”
A spokesperson for the Chinese Ministry of Foreign Affairs later stated that Beijing will take all necessary measures to safeguard the legitimate rights and interests of “Chinese companies.”
The issue has been a hot-button issue since a 2017 report highlighted Chinese acquisitions of ports around the world, revealing that Chinese companies had spent billions of dollars acquiring ports in the Indo-Pacific region.
The report stated, ambitionC4ADS detailed the acquisition of 15 ports in the region, some of which are part of China’s Belt and Road Initiative.
Changhe port for sale
The issue came to international attention last March after Trump returned to the White House, when BlackRock announced it would lead a consortium in negotiations on a bill. Hong Kong company Chang Hutchison spends US$22.8 billion to acquire more than 40 ports in 23 countries.
The huge deal includes two Chinese-run ports on the Panama Canal, delighting Trump but unsettling leadership in Beijing.
State media condemns port sale betrayal of the chinese people and “American hegemonic behavior.”
Beijing officials threatened to block the deal, insisting that the national shipping company COSCO must have shares A consortium of BlackRock and MSC want to buy the ports.
In September, there were reports that the White House More strategic ports are needed to reduce China’s maritime dominanceamid concerns that Washington is overly reliant on foreign ships and ports.
Lawmakers are also concerned about China’s maritime infrastructure holdings in places such as Greece, Spain, the Caribbean and U.S. West Coast ports, sources said.
By late last year, the deal was reportedly at an impasse, with BlackRock and MSC pushing back against Beijing. Requires COSCO to own a majority stake In the new group where the port will run.
That has fueled speculation that Trump, Xi and major buyers will have to try to resolve the issue sometime later this year, or perhaps agree to carve out the ports they want most.
China ‘threats’ to buy back Australian ports
In fact, it’s not just Panamanian ports where ownership disputes exist. In 2015, the Landbridge Group, owned by Chinese billionaire Ye Cheng, also caused considerable controversy when it purchased a 99-year lease on the port of Darwin in northern Australia.
The Albanian government vowed before last year’s election to return the port to Australian control over national security concerns and the port is located close to U.S. and Australian military bases in the Far North.
But the Chinese seem to be sticking to their guns.
On Wednesday, China’s envoy in Canberra seemed happy to stir things up again, saying: Beijing will “take measures” If the federal government takes back control of the port, it will defend the interests of Chinese companies.
Afterwards, Albanese said they would proceed regardless because Australia’s control of the port was in the “national interest”.
Both Canberra and Washington want the Chinese to leave because Darwin is the hub for up to 2,500 US Marines who rotate through the city each year. port Also used for equipment inlets and fuel storage.
See also:
COSCO’s demands ‘could block BlackRock’s $23 billion takeover of Hutchison Ports’
Changhe Port deal mired in US-China trade war
China threatens to block Panamanian port deal, “hopes to gain COSCO shares”
China warns CK Hutchison, BlackRock: be cautious about port deals
Clouds cloud over Panama port trade: China slams Hong Kong shipowners’ sell-off
China and CK Hutchison ‘seeking solutions to $23 billion port deal’
Trump praises BlackRock’s $23 billion acquisition of Hong Kong’s giant port
US investigation shows China unfairly dominates shipbuilding industry: sources
