Panama "Caves In" To Trump

Caught in the Crossfire Panama Panamanian authorities began auditing the Hong Kong-based company that controls the two ports adjacent to the Panama Canal, following threats by US President Donald Trump of taking back control of the waterway over alleged Chinese interference, Bloomberg reported. The Panama Ports Company, which runs the ports, is a subsidiary of CK Hutchison Holdings, owned by Hong Kong billionaire Li Ka-Shing and is based in Hong Kong. Panama gave Li’s company concession over the canal ports in a 1998 agreement that was renewed in 2021. According to the terms of the agreement, Li must share a part of the revenue earned from running the two docks with the country. Because the ports today handle “significantly more cargo” compared with 1998, the Panamanian government believes that the share of revenue it receives is insufficient and is auditing the company to determine the proper share. Hong Kong is a part of China but the city operates autonomously, with its own borders, currency and legal system. However, many say Hong Kong is firmly under Chinese control. As a result, Trump has alleged that Panama is allowing Chinese interference in the canal, violating the promise of neutrality in the American-built canal given by Panama to the US in 1999 when Washington turned over control of the waterway, the Wall Street Journal explained. And while China’s investment and cargo in the canal are minimal compared to the US’ share, Washington worries over Beijing’s influence growing: Currently, there are some China-backed projects in Panama, including a canal bridge, a new subway line, a cruise ship terminal and a wind-energy farm, the Wall Street Journal wrote. Share this story