Story perspectives

China Warns Panama After Supreme Court Cancels Port Deal

2/6/2026

Summary

Story summary

China warned Panama on February 4 it would face heavy prices after the Supreme Court annulled CK Hutchison's contract to operate two Panama Canal ports.
The Chinese government condemned the ruling and pledged to protect its business interests.
President José Raúl Mulino said Panama would not be intimidated and would uphold the decision.
Panama Maritime Authority will collaborate with CK Hutchison's subsidiary to maintain operations until a concession is awarded.

History

Historical Context

The 1977 Panama Canal Treaty, signed by U.S. President Jimmy Carter and Panamanian leader Omar Torrijos, marked a pivotal shift in control of the canal from the U.S. to Panama, effective October 1, 1979. This treaty aimed to resolve long-standing tensions over sovereignty and economic interests, as approximately 30% of Panama's foreign trade relied on the canal, shaping its future economic landscape.

1 of 2

Story summary

China warned Panama on February 4 it would face heavy prices after the Supreme Court annulled CK Hutchison's contract to operate two Panama Canal ports.
The Chinese government condemned the ruling and pledged to protect its business interests.
President José Raúl Mulino said Panama would not be intimidated and would uphold the decision.
Panama Maritime Authority will collaborate with CK Hutchison's subsidiary to maintain operations until a concession is awarded.

1 / 2