The minister of Foreign Affairs from China, Wang Yisaid that Beijing is willing to deepen practical cooperation with Panama and urged the Central American country to safeguard the rights of Chinese companies during a meeting with the minister of Foreign Affairs Panamanian, Javier Martínez-Achareported the official Chinese news agency Xinhua.
Wangwho met with Martínez-Acha On the sidelines of a meeting of the United Nations Security Council in New York, he said that relations between China and Panama should not be subject to interference from third parties, reported Xinhuain reference to the pressure exerted by the United States on infrastructure linked to China near the Panama Canal, through which 5% of world maritime trade transits.
The meeting comes after months of tension over the future of two key container terminals at Balboa and Cristobal, located near the canal’s Pacific and Atlantic entrances but operating independently of the waterway itself.
At the end of January, the Supreme Court of Panama declared unconstitutional the legal framework underlying a 1997 concession—and a 2021 extension—that allowed Panama Ports Companya subsidiary of CK Hutchisonwhich is listed on the Hong Kong Stock Exchange, operate the terminals.
The authorities of China and Hong Kong have expressed their opposition to the ruling against the port concessions of CK Hutchisoncalling it an “act of bad faith.” The cancellation came after pressure from the United States to curb Chinese influence around the channel.
CK Hutchisonwhich managed the ports for almost 30 years, has accused Panamanian authorities of illegally confiscating its properties and has initiated international arbitration against the country, demanding damages of more than US$2 billion.
