Story perspectives

Panama's Ruling Signals Shift in US-China Relations

2/7/2026

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Summary

Story summary

Panama's President José Raúl Mulino dismissed China's threats after the Supreme Court ruled CK Hutchison's port concession unconstitutional for favoritism.
The ruling highlights tensions between the U.S. and China, given the canal's importance for U.S. trade.
U.S. President Donald Trump has said he plans to reclaim waterway control, citing treaty violations by China.
The ruling may signal a broader shift in Latin America's approach to China amid rising stakes.

History

Historical Context

The 1977 Torrijos-Carter Treaties marked a pivotal moment in U.S.-Panama relations, transferring control of the Panama Canal to Panama by December 31, 1999. This treaty aimed to resolve longstanding tensions over U.S. dominance, following decades of Panamanian unrest and demands for sovereignty. Today, the canal remains crucial for global trade, with over 5% of world trade passing through it annually.

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Story summary

Panama's President José Raúl Mulino dismissed China's threats after the Supreme Court ruled CK Hutchison's port concession unconstitutional for favoritism.
The ruling highlights tensions between the U.S. and China, given the canal's importance for U.S. trade.
U.S. President Donald Trump has said he plans to reclaim waterway control, citing treaty violations by China.
The ruling may signal a broader shift in Latin America's approach to China amid rising stakes.

1 / 2