Panama's President José Raúl Mulino asserts that China is more reliant on Panama following the annulment of port concessions granted to a Chinese conglomerate, suggesting potential economic repercussions from China's response.
President José Raúl Mulino of Panama has publicly stated that China is in greater need of Panama's Canal than vice versa, following a Supreme Court decision that annulled the concessions of two ports to the Chinese company CK Hutchison. During a press conference, he emphasized the importance of the Panama Canal for Chinese trade, noting that a significant portion of what China produces passes through the canal, as does gas that reaches the country. This assertion comes amid concerns about potential retaliatory measures from the Chinese government.
The situation escalated after the Panama Supreme Court's ruling, which has led to tensions in the relationship between Panama and China. Chinese foreign ministry spokesperson Guo Jiakun announced that their government is prepared to take necessary measures to protect the rights and interests of Chinese companies in light of this decision. The decision to revoke the concession is significant, as it raises questions about Panama's future dealings with China, a crucial trading partner.
Mulino's comments reflect a strategic position in which he underscores Panama's value on the global trade stage, particularly concerning Chinese goods. The rhetoric suggests a complex interdependence between the two nations, where both stand to gain from maintaining a cooperative relationship despite ongoing tensions. However, the concerns about potential Chinese retaliation underscore the precarious nature of Panama's decision and the delicate balance of power in this international scenario.
