Matt Brazil
Relations between Panama and the People’s Republic of China (PRC), only recently in good standing, have taken a turn for the worse in 2026. In February, Panama’s Supreme Court jolted the bilateral relationship by ruling that the concession granted to a subsidiary of the global ports, telecom, and retail conglomerate from Hong Kong, CK Hutchison, was unconstitutional. The company, controlled by the family of Li Ka-shing, had managed those ports since 1997; but its work in the canal was suspended and taken over by the government pending appeals (Caixin, January 30; BBC, January 31; 163.com, March 26).
Beijing’s reaction to the ruling was sharp. A February article signed by “Gang’ao Ping” , the pen name for the Hong Kong and Macau Work Office of the Chinese Communist Party (CCP) Central Committee , called the court decision “absurd, shameful, and lamentable” . It promised that Panama would “pay a heavy price” (Hong Kong and Macau Work Office, February 3). Retaliation quickly commenced.
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