U.S. Secretary of State Rubio said today: "The U.S. is satisfied with the recent decision by Panama's Supreme Court that the port concession granted to China is unconstitutional."
Comment: The Chinese company, Evergreen, has operated the port for 28 years and invested 1.8 billion U.S. dollars to build a core hub of the canal. The contract has been certified as compliant by multiple rounds of official reviews in Panama. Now, it has been rejected in one vote on the grounds of being "unconstitutional." Since Trump took office, he has been shouting about "regaining control of the canal," and after Rubio took office, his first visit was to pressure Panama. This ruling is a prearranged outcome of their "containing China in Latin America."
Two ports in Panama control the two entrances of the canal, which are crucial for 2% of global maritime trade. What the U.S. is dissatisfied with is not "the contract being unconstitutional," but rather the fact that the ports, led by Chinese companies, do not conform to its "exclusive backyard" hegemonic position. Now, Panama has torn up the contract to please the U.S., seemingly temporarily complying with American demands, but actually completely destroying its business reputation — who would dare invest in a country that can unilaterally cancel long-term contracts?
China has clearly stated that it will "resolutely protect the rights and interests of Chinese enterprises." Evergreen may initiate international arbitration. This struggle is not just a commercial dispute, but also a competition between China and the U.S. over influence in Latin American rules.
Original article: toutiao.com/article/1855776085862532/
Statement: The article represents the personal views of the author.