Turbulent Tides: China and the Panama Canal Port Dispute

China has issued a strong warning to Panama after a court annulled a contract with Hong Kong's CK Hutchison for operating ports at the Panama Canal. The Hong Kong and Macau Affairs Office criticized Panama's Supreme Court decision as 'absurd' and 'shameful' and vowed to protect the interests of its companies.

The ruling, seen as a win for the U.S. in its rivalry with China over global trade routes, canceled Panama Ports Company's long-standing contract and threatens CK Hutchison's $23-billion port sale. The legal decision cited constitutional and public interest concerns.

China warned of 'heavy prices' if Panama continues its stance, while U.S. authorities welcomed the ruling. The move has added tension to international economic relations, highlighting the strategic importance of the Panama Canal in geopolitical power struggles.