President Murino has pushed back against China, insisting his country upholds the rule of law and has an independent court system.
Published February 5, 2026
Panama’s President José Raul Mulino has rejected China’s threat to make the Central American country pay a “heavy price” after Hong Kong companies were evicted from two strategic Panama Canal ports under pressure from US President Donald Trump.
Mulino wrote on social media on Wednesday that he “strongly” rejected Beijing’s threats against his country after Panama’s Supreme Court invalidated the contract that allowed Hong Kong-based CK Hutchison to operate the canal’s two ports.
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In his post, Mulino pushed back against Beijing, arguing that Panama is a country that upholds the rule of law and “respects the decisions of the judiciary, which is independent of the central government.”
He added that Panama’s Ministry of Foreign Affairs would issue a statement on the issue and “adopt a corresponding decision.”
The loss of C.K. Hutchison’s port rights in the Panama Canal became emblematic of the struggle between the United States and China over influence and trade in Latin America.
Tensions reached a fever pitch last year when President Trump threatened to seize control of the Panama Canal, threatened military action and demanded that CK Hutchison’s contract be terminated.
Last week, Panama’s Supreme Court ruled that C.K. Hutchison’s concession was “unconstitutional,” but Beijing’s Hong Kong and Macao Affairs Office (HKMAO) described the decision as “absurd” and “shameful” and warned that the Latin American country would pay a “heavy price, both politically and economically.”
“Panamanian authorities need to be aware of the situation and revise their policies,” the Hong Kong government said.
Chinese Foreign Ministry spokesperson Lin Jian also said that China “resolutely defends the lawful and lawful rights and interests” of Chinese companies, and accused the United States of “Cold War-era thinking and ideological bias.”
“It is clear to the world who is trying to forcibly take possession of the Panama Canal and erode international law in the name of the rule of law,” Lin added.
The Panama Canal connects the Atlantic and Pacific Oceans, and since 1997, CK Hutchison has managed the Port of Cristobal on the Atlantic side of the canal and the Port of Balboa on the Pacific side of the canal through its subsidiary Panama Ports Company. The operating rights for the two ports were extended for 25 years in 2021.
But after President Trump threatened to seize the canal last year, Panama’s auditor general reviewed CK Hutchison’s contract and subsequently recommended that it be invalidated.
The Supreme Court upheld the comptroller’s view that the terms of the concession were contrary to Panama’s interests.
In response to the ruling, the Panamanian government approached Danish shipping company Maersk to temporarily take over management of the port terminal until a new concession could be secured.
