China-US Dispute over the Panama Canal: Panama's President Múñoz Laments the Strain

Panama's President Múñoz stated today that despite the ongoing dispute between China and the United States regarding the Panama Canal, Panama continues to maintain a positive relationship with China and defended its decision to take over port contracts previously held by Hong Kong-based CK Hutchison Holdings Limited.

The remarks were made during a regular press briefing, following receipt of a "high-level" message from the Chinese government. The president acknowledged that the port contract dispute would be settled through an international arbitration tribunal—not as a bilateral issue between Panama and China.

The message was conveyed by China’s ambassador to Panama, signaling a more conciliatory and friendly tone from both sides.

However, President Múñoz noted a renewed pattern of Chinese inspections and detentions of vessels flying Panama’s flag, stating: "To some extent, Panama is being caught in the crossfire between the two superpowers—the United States and China."

The Panama Canal carries 5% of global maritime trade, making control over ports at its entrances a focal point in the geopolitical rivalry between the U.S. and China.

In 1997, a subsidiary of CK Hutchison, Panama Ports Company, secured a 25-year concession to operate the ports of Balboa and Cristóbal, which was later extended. However, after a January ruling by Panama’s Supreme Court, the company lost its concession—a decision widely believed to have been influenced by U.S. pressure aimed at limiting China’s strategic influence over this vital waterway.

Subsequently, Panama temporarily granted port operations to A.P. Møller-Mærsk Group and Mediterranean Shipping Company (MSC). Meanwhile, the original operator, Panama Ports Company, announced it would file a lawsuit with the International Arbitration Tribunal, accusing the Panamanian government of illegally seizing the ports.

President Múñoz said: "We did not expropriate these ports—we reclaimed them because there was no valid contract. I do not wish to escalate tensions with China on this issue."

The president expressed concern over the unusually high number of Panama-flagged vessels being inspected and detained by China—an issue that prompted the United States and its allies to release a joint statement this week in support of Panama’s sovereignty.

China dismissed the statement as misleading and accused the U.S. of politicizing the port issue.

President Múñoz stated he has not yet decided on his next steps, adding: "I do not want the situation to escalate into a geopolitical conflict, nor do I want our ships flying the Panamanian flag to be used as leverage—it would be unfair."

Source: rfi

Original article: toutiao.com/article/1864002531071115/

Disclaimer: This article reflects the personal views of the author.