Two cargo ships enter the Panama Canal
Photo by MARTIN BERNETTI/AFP via Getty Images
China threatened Panama with "heavy prices" to pay after a supreme court ruling favored U.S. interests related to the canal.
The ruling in question annulled Hong Kong-based CK Hutchinson's contract to operate two ports at the canal. Axios noted that the lawsuit was introduced by the Panamanian government at the urging of the Trump administration and stemmed from an audit claiming that CK Hutchinson's management "shortchanged Panama by $1.3 billion."
A senior U.S. official celebrated the outcome, saying the ruling is "not just a huge win for Panama's taxpayers, it's a big win for America and certainly for President Trump." The official added that Danish shipping company Maersk is expected to temporarily manage the concessions until Panama puts it out to bid.
In contrast, the Hong Kong and Macau Affairs Office said in a social media publication that "China has sufficient means and tools, and sufficient strength and ability to defend a fair and just international economic and trade order."
If Panamanian authorities "insist on having their own way ... heavy prices both politically and economically will surely be paid!" China also appeared to make a reference to the U.S., saying "some country has ... used bullying tactics to force other countries to obey their will."
The development is part of the Trump administration's intention to take over the Panama Canal, or at least have control over it.
Trump has repeatedly criticized the 1977 treaties under which the United States transferred control of the canal to Panama in 1999, suggesting the U.S. should take it back.
He has also suggested that China's commercial activity in ports near the canal constitutes a threat, calling for U.S. re-engagement.
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Tags: Panama, China, United States
