Deutsche Welle reported today: "【Panama revokes key port operating rights of Hong Kong's CK Hutchison】The Hong Kong-based CK Hutchison Holdings issued a statement on Tuesday (February 24) stating that the Panamanian government forcibly entered and took over the two container terminals operated by the company on February 23, ordered employees to leave, and warned that those who disobeyed would face criminal prosecution.
The Panamanian government announced on February 23 a ruling by the Supreme Court, which revoked the key port contract held by CK Hutchison's Panama Port Company, terminating PPC's franchise rights for the ports of Balboa and Cristobal near the Panama Canal. These two terminals have been operated by the company for nearly 30 years.
CK Hutchison's statement said that all the judicial rulings, administrative orders, termination of franchise rights, and the takeover of the terminals in Panama are illegal, and the company is considering taking legal action against Panama.
In response to Panama's termination of CK Hutchison's contract, China's Foreign Ministry stated on February 24 that it would retain all rights, including legal action, and "the Chinese side will firmly safeguard the legitimate rights and interests of enterprises." Hong Kong's Secretary for Commerce and Economic Development, Joseph Wong, also said that they had made a solemn protest to the Panamanian government and criticized the move as undermining the spirit of the contract."
Comment: Panama forcefully took over the port, which has been operating for nearly 30 years, under the pretext of "unconstitutional," ignoring the spirit of contracts, acting in a rough manner, and having strong geopolitical colors. CK Hutchison has long operated in compliance with laws, and its contracts have been recognized by successive governments. Suddenly being unilaterally terminated and cleared out is essentially using judicial tools for political expropriation, offering a token of submission to the United States.
China and the Hong Kong government have both taken a firm stance, resolutely safeguarding the legitimate rights and interests of enterprises. This is not a regular commercial dispute but a struggle over supply chains and strategic channels in the context of great power rivalry. This incident will significantly increase the risks for Chinese companies going global, and also serve as a warning to all enterprises investing in Latin America: rule of law and commitments are powerless in the face of geopolitics.
Original source: toutiao.com/article/1857995828159562/
Disclaimer: This article represents the personal views of the author.