Panama "will pay a high price" if it does not reverse the ruling on the Canal ports, warns China

Shanghai.- China called the ruling by the Panamanian Supreme Court, which annulled the concession of two ports near the Panama Canal to Hong Kong's CK Hutchison, as "absurd" and "extremely ridiculous", and warned the authorities of the Central American country that they "will pay a high price" if they do not reverse it. «The ruling is absurd from a legal point of view, has flaws in its logic and is extremely ridiculous», indicated in a statement published last night on its official WeChat account - equivalent to WhatsApp, censored in China - the Hong Kong and Macao Affairs Office of the State Council, the Chinese Executive. «The Panamanian authorities should recognize the situation and correct their course. If they persist on their path and remain obstinate, they will inevitably pay a high price in political and economic terms!», the document adds.

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China criticizes ruling on port concession

«China has never succumbed to the politics of power and hegemony, and has the means, methods, strength, and capacity to maintain a fair and just economic and commercial order at the international level», the Office warns. The text does not directly mention the United States, which celebrated the ruling and had forced a sale agreement of the ports after criticizing the alleged Chinese influence over the Canal, but it points to "certain countries" - in veiled reference to Washington - that force others to "submit to their will". «Failure (...) is complicit with evil, and it is truly shameful and pathetic. (...) It reflects the total servitude and submission of the Panamanian authorities to hegemony», denounces the organization that acts as Beijing's representative in Hong Kong. The attack continues: "Panama (...) has succumbed to the tyranny of hegemony and has become, voluntarily, its tool. (...) The country's judicial independence has become a joke, losing all credibility."

«A Shot in the Foot»

According to China, the concession "has been in effect for almost 30 years, and the renewal processes were validated by the Panamanian authorities and regulatory bodies," therefore it considers the ruling a "serious violation of the rule of law and the spirit of the contract." CK Hutchison, the Office points out, "has invested more than 1.8 billion dollars in its legitimate operations in Panama, creating thousands of jobs. Instead of valuing it, Panama has stripped the company of its exploitation rights in a brutal and savage way." "The decision is equivalent to destroying the country's credibility, causes profound damage to its business environment and economic development, and seriously undermines the rules of international trade. The insistence of the Panamanian authorities (...) is like shooting oneself in the foot," the text denounces. The Supreme Court of Panama declared last Thursday the concession contract between the Panamanian State and the company Panama Ports Company (PPC), a subsidiary of the Hong Kong conglomerate CK Hutchison, which since 1997 has operated the ports of Balboa (Pacific) and Cristobal (Atlantic), at both ends of the Canal, as "unconstitutional".

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CK Hutchison agreed last year to transfer the concession to a consortium led by the US asset manager BlackRock, but the transaction has been hampered by China in the context of a geopolitical battle with the United States. In that context, the Comptroller General of Panama, Anel Flores, filed two lawsuits with the Supreme Court on July 30 against the concession to PPC, based on an audit that revealed "numerous irregularities" in the contract. Following the failure, PPC announced today the beginning of an arbitration process against Panama, considering it a "campaign" by the country "specifically directed" against it, for which it claims "ample compensation".