Arya News - The search of CK Hutchison’s subsidiary marks the latest flashpoint in the rising US-China tensions over control of Panama’s vital trade canal.
Authorities in Panama have reportedly searched and removed property from the subsidiary of a Hong Kong company that has been at the heart of recent tensions between the United States and China over the Panama Canal.
In a statement on Friday, the Panama Ports Company (PPC), part of the Hong Kong conglomerate CK Hutchison, said the Panamanian government “acted in disregard for the rule of law”.
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list of 3 items list 1 of 3 Greenland’s strategic position in seven maps: Why Trump wants the island list 2 of 3 Panama court rules Chinese control of canal ports unconstitutional list 3 of 3 Shipping giant Maersk to take over Panama Canal ports after court ruling end of list It decried what it called “the latest steps to invade and take the property of PPC” during a search on Thursday. It also accused authorities of entering a private storage site without notice and ignoring requests to safeguard sensitive corporate data.
Panama Ports Company has been under increased scrutiny following US President Donald Trump’s claims that China was asserting too much influence over the arterial trade canal, which connects the Pacific Ocean to the Atlantic.
Panama’s government has robustly denied Chinese control of the waterway.
But last month, the country’s Supreme Court annulled deals that gave the Panama Ports Company control over two canal ports. The court ruled that the concessions provided to the company were unconstitutional.
China has alleged that the court case was a reaction to “hegemonic” pressure.
It condemned Panama’s seizure of the ports as well as its decision to temporarily tap the Danish Maersk company and Switzerland-based MSC to run the ports until a new agreement is reached.
Panama’s President Jose Raul Mulino, meanwhile, warned China to “be careful” in its manoeuvring.
“They need us more than we need them,” he said.
The two ports in question, the Balboa Port on the Pacific Ocean side and the Cristobal Port at the Atlantic end, handle about 39 percent of all of Panama’s container traffic.
The ports are located at the entrances of the Panama Canal, but they do not fall under the supervision of the autonomous Panama Canal Authority that operates the waterway.
Prior to taking office, Trump repeatedly said he wanted to take control of the Panama Canal, claiming that the US was being “ripped off” by its toll prices.
The canal had previously been controlled by the US, but it was handed over to Panama in 1999 under a 1977 treaty signed by then-President Jimmy Carter.
Prior to Friday’s raid, CK Hutchison had agreed to a $23bn sale of dozens of ports worldwide, including the Panamanian terminals, to a consortium led by the US multinational BlackRock and the Mediterranean Shipping Company.
The deal, which has faced repeated delays, has been criticised by Beijing but welcomed by Trump.