The US has announced a six-nation coalition aimed at pressuring China to relinquish its interests in two ports in the Panama Canal, accusing Beijing of infringing on Panama’s sovereignty and politicizing global trade. China has called the claims “baseless.”
The development is part of a pattern of US efforts to push China out of Latin America. The US National Security Strategy calls for non-Western “competitors” to be prevented from owning or controlling key assets in the Western Hemisphere.
Last year, US President Donald Trump claimed that China is “operating the Panama Canal” and threatened to “take it back.”
The US State Department issued a joint statement on Tuesday with Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, saying they support Panama against what they describe as external pressure from China.
China rejected the accusations, with the Foreign Ministry hitting back on Wednesday against what it called a smear campaign.
The US-led campaign follows a ruling in January by Panama’s Supreme Court that annulled contracts held by a subsidiary of Hong Kong-based CK Hutchison Holdings for the Balboa and Cristobal, two key ports at the canal’s entrances – a move that the US has backed.
The Chinese company, which managed the terminals for nearly three decades, has contested the ruling, alleging unlawful expropriation, and has launched international arbitration, seeking over $2 billion in reparations.
