China has vowed to protect its companies' interests after Panama's Supreme Court annulled a major port contract this week, escalating tensions over infrastructure projects linked to the strategic Panama Canal. The court ruled on Thursday that a concession held by Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison Holdings Limited, was unconstitutional.
Chinese Foreign Ministry spokesperson Guo Jiakun stated on Friday that Beijing would "take all necessary measures" to safeguard the rights of Chinese firms, emphasizing compliance with international agreements. CK Hutchison, which operates ports globally, defended its position, noting the contract resulted from a "transparent international bidding process" and full adherence to legal obligations.
The dispute highlights growing scrutiny of Chinese-linked infrastructure investments in key maritime corridors. Analysts suggest the ruling could impact cross-regional trade dynamics, particularly as the Panama Canal remains vital for global shipping. The Chinese mainland has consistently advocated for fair treatment of overseas investors, including businesses from Hong Kong.
