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Panama’s president hits back after China threat in canal ports row

Panama’s president hits back after China threat in canal ports row

Summary

Panama's President Jose Raul Mulino rejected China's warning after a Hong Kong company lost its contract to operate two ports on the Panama Canal. This followed a decision by Panama’s Supreme Court, influenced by U.S. pressure, declaring the contract unconstitutional. China criticized the decision and warned Panama of political and economic consequences.

Key Facts

  • Panama's President Jose Raul Mulino rejected a warning from China.
  • The warning followed the eviction of a Hong Kong company from two ports in the Panama Canal.
  • Panama’s Supreme Court ruled the contract allowing CK Hutchison to operate the ports was unconstitutional.
  • President Trump had pressured Panama to cancel CK Hutchison’s contracts.
  • China called the court's decision "absurd" and "shameful".
  • The removed company, CK Hutchison, managed ports at each end of the canal since 1997.
  • Danish company Maersk is temporarily managing the ports.
  • The Panama Canal links the Atlantic and Pacific oceans, making it strategically important.
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