China-Panama Port Clash: Trading Blows Over Canal Control

China issues a stern warning to Panama after its Supreme Court invalidated CK Hutchison's long-standing port contract, labelling the decision as 'absurd' and a threat to Chinese interests. The ruling, favoring U.S. strategic interests, jeopardizes a major port sale and escalates geopolitical tensions.

China has issued a stark warning to Panama following a court decision that annulled CK Hutchison's port contract at the Panama Canal. The ruling, according to China's Hong Kong and Macau Affairs Office, is 'absurd' and could have severe economic and political consequences.

The decision by Panama's Supreme Court deemed the contract unconstitutional, a significant setback for Hong Kong-based CK Hutchison's expansion plans, particularly its proposed $23 billion sale of ports. The ruling was celebrated by U.S. officials as a strategic victory in the ongoing U.S.-China rivalry.

China accused 'some country' of using coercion to achieve compliance from others, hinting at the U.S. influence behind Panama's decision. As tensions rise, China vows to defend its economic interests and maintains it has the resources and strength to uphold a fair international trade order.

(With inputs from agencies.)