Media Contact
Adam Allington
The Chinese government has condemned a ruling from Panama’s top court, which ruled to void Hong Kong-based CK Hutchison’s license to operate ports at either end of the Panama Canal. China said Panama “will inevitably pay a heavy price” unless it changes course.
Lourdes Casanova
director of the Emerging Markets Institute at Cornell University
Lourdes Casanova, director of the Emerging Markets Institute at Cornell University, says the ruling on serves as a visible bellwether for escalating U.S.–China competition in the Western Hemisphere.
Casanova says:
“The Panama ports ruling represents a high-visibility test case in the broader U.S.–China rivalry over strategic infrastructure in Latin America, particularly logistics hubs such as ports, telecommunications, and energy corridors. The CK Hutchison-operated ports at the canal have symbolic and geopolitical value beyond economics, making the dispute more about strategic influence than commercial returns.
“On the China side, the Panama Canal’s importance for the country has already declined following the opening of Peru’s Chancay Port in late 2024. Majority-owned by China’s COSCO, Chancay offers faster and cheaper routes for South American agricultural and resource exports to Asia, reducing reliance on the canal.
“In this context, China’s strong reaction and Hutchison’s arbitration appear less about the canal’s strategic role and more about defending Chinese corporate interests, especially as roughly 40-percent of canal container traffic remains tied to the United States.”
