President of Panama Opposes China's Criticism of the Cancellation of Port Concession

President of Panama, Jose Raul Mulino, opposed China's criticism of the country's Supreme Court ruling. The ruling determined that the contract of a Hong Kong company for the concession of two ports in the country was unconstitutional.

Mulino wrote on social media platform X: "I strongly oppose the statement made by the Office of the State Council for Hong Kong and Macao Affairs regarding the Supreme Court's ruling on the port contract."

Last week, the Supreme Court of Panama ruled that the contract of Panama Port Company (PPC), a subsidiary of Hong Kong-based CK Infrastructure Holdings Limited, was unconstitutional. The contract involved the development, construction, operation, and management of container terminal at Balboa Port and Cristobal Port.

The Office of the State Council for Hong Kong and Macao Affairs of the People's Republic of China called the court's ruling absurd and stated that it violated the legitimate rights and interests of CK Infrastructure Holdings Limited. The company has filed a lawsuit against the Republic of Panama over this matter.

Although Chinese authorities did not directly mention the United States, they accused the Panamanian government of yielding to "hegemony," giving in to "pressure and intimidation," rather than defending national independence, and warned of possible political and economic consequences.

President of Panama stated that Panama is a country under the rule of law and respects judicial independence. He pointed out that the Ministry of Foreign Affairs of Panama "will make comments on this issue and take appropriate actions."

The contract of Panama Port Company was signed in 1997, transferring the management rights of Panama's main seaports to the company for 25 years with an option to renew. In 2021, the agreement was renewed to 2047 without regulatory approval. According to an audit, the unfavorable terms of the contract have caused the Panamanian government to lose more than $1.3 billion.

Original article: toutiao.com/article/1856245732807755/

Statement: This article represents the views of the author himself.