BRI and Setback of Panama Supreme Court Decision
China’s Belt and Road Initiative (BRI) is under immense pressure from a series of US onslaughts, ranging from the use of coercive power to diplomatic threats aimed at discouraging countries such as Cuba, Colombia, Bolivia and Argentina from deepening engagement with China. Against this backdrop, an engineered ruling by Panama’s Supreme Court has declared unconstitutional the contracts under which a Chinese company operates ports along the Panama Canal. Consequently, Latin America has emerged as one of the hottest geopolitical flashpoints, where US strategies seek to erode the presence of China and Russia and undermine their peaceful, people-friendly partnerships in the region.
Most recently, Panama’s top court annulled the concession held by Hong Kong–based CK Hutchison Holdings to operate ports on both sides of the canal. This development represents a strategic setback not only for the BRI but also for Chinese shipping companies and inflows of foreign direct investment. Additionally, the biased findings of an audit conducted by Panama’s comptroller have raised concerns regarding the 25-year extension of the concession granted in 2021, further complicating the legal and commercial environment.
In response, China announced that it would take necessary measures following the Supreme Court ruling declaring Chinese control of Panama Canal ports unconstitutional. Chinese Foreign Ministry spokesman Guo Jiakun stated that China would resolutely safeguard the legitimate rights and interests of its companies. The Panama Ports Company (PPC), a subsidiary of........
