Overview
- Chinese Foreign Minister Wang Yi told Panama’s top diplomat on May 27 that China expects Panama to safeguard Chinese companies and warned against third‑party interference in bilateral ties.
- Panama’s foreign minister said the two sides favor dialogue and trust‑building, and President José Raúl Mulino has rejected claims that U.S. pressure drove Panama’s earlier court decision.
- Panama’s Supreme Court annulled the legal basis for the 1997 concession that let CK Hutchison run the Balboa and Cristóbal terminals, and Panama installed temporary operators after the January ruling.
- CK Hutchison has launched an investor arbitration seeking more than US$2 billion in damages, while shipping changes such as COSCO cutting Balboa calls and Maersk and MSC stepping in have disrupted local port work and schedules.
- The dispute now mixes investor‑state legal claims with great‑power diplomacy, so the next developments to watch are the arbitration timetable, continuity of terminal operations, and whether Beijing or Washington escalate public or commercial pressure.