BANGKOK (AP) — Hong Kong is protesting Panama’s seizure of two ports on a canal vital for global trade that were operated by a Hong Kong-based company for decades, the city’s government said Tuesday.
Hong Kong’s Commerce and Economic Development Bureau said in a statement it had lodged “stern protests” with Panama’s consulate, adding that it had expressed strong opposition and dissatisfaction and would “staunchly support the legitimate rights and interests of Hong Kong corporations overseas.”
The ports located at the mouth and tail of the Panama Canal, which have been operated by a subsidiary of CK Hutchison since 1997, became embroiled in a legal dispute after getting caught in the middle of the U.S. and China’s competition for influence in the region. The ports became the focus of global attention after U.S. President Donald Trump accused China of “running the Panama Canal.”
Panama’s government took control of the two ports on Monday after the country’s Supreme Court struck down a law approving the concession contract for Panama Ports Company, a subsidiary of CK Hutchison. That ruling stripped the port of legal basis for its operations, and the company is now bringing arbitration proceedings against the country.
China’s Ministry of Foreign Affairs also weighed in Tuesday. “China will firmly safeguard the company’s legitimate and lawful rights and interests,” said spokesperson Mao Ning at a daily press briefing.
Panama said it would ensure smooth operation of the waterway.
The director of ports for Panama’s Maritime Authority, said at a press conference that the agency “took possession of its ports and will guarantee continuity of operations.” He added that the entity’s board of directors will approve a plan for transitional operation for up to 18 months until long-term operators are selected.
Later in a televised message to the nation, President José Raúl Mulino said that the seizure was not an expropriation, but the government would keep control of the ports “until their real value is determined for corresponding actions.” He also assured that “everything done was not against anyone, but in compliance with the law,” referring to challenges from the company and China’s government.
The ports are also due to be sold as part of a deal struck by CK Hutchison with a group of buyers including Blackrock after Trump began putting pressure on Panama to reduce Chinese influence last year.
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AP writer Alma Solís contributed to this report from Panama City.