Panama's President Says Port Entangled in U.S.-China Rivalry
Panama's President José Raúl Mulino said on April 30 that, despite being drawn into the dispute between China and the United States, Panama continues to maintain a positive relationship with China. Furthermore, he defended the Panamanian government's takeover of the port contract previously held by Hong Kong-based Hutchison Ports.
According to Reuters, prior to making these remarks at a regular press briefing, Mulino received what he described as a "high-level" message from the Chinese government confirming that the port contract dispute would be resolved through international arbitration and would not constitute an issue between Panama and the Chinese government.
Mulino stated: "To some extent, we are like tides, swept along by the outcomes of the rivalry between two major global powers."
At the beginning of this year, Panama's Supreme Court ruled that the concession agreement allowing Hutchison Ports' subsidiary, Panama Ports Company, to operate two ports at either end of the canal was unconstitutional. Subsequently, the government forcibly took over the facilities and seized the company's assets. In response, the Hutchison subsidiary has filed a lawsuit under ICC rules, seeking compensation for breach of contract of at least $2 billion. The two ports—Balboa and Cristóbal—that were previously operated by the company are now temporarily managed by Maersk and Mediterranean Shipping Company (MSC).
Mulino said: "We did not expropriate these ports—we took them over because the contract had expired. I have no intention of escalating this issue with China."
He also noted that recent incidents involving Panamanian-flagged vessels being detained and inspected in China have been increasing significantly. He emphasized that he does not wish for the situation to escalate due to geopolitical tensions, nor does he want Panamanian-flagged ships used as leverage—calling such treatment unfair. At this stage, he has not yet decided on any further measures.
Original source: toutiao.com/article/1863984003785859/
Disclaimer: This article reflects the personal views of the author.