Banditry tramples upon China's interests: China Daily editorial

In a blatant act of banditry, the Panamanian government on Monday seized the ports located at the Pacific and Atlantic entrances to the Panama Canal that have been operated by CK Hutchison Holdings, a Hong Kong-based conglomerate, for nearly three decades.

The seizure, undertaken under the guise of a Panamanian Supreme Court ruling, is nothing but a politically motivated move. It is simply compliance with the demand of the United States that the Chinese company be forcibly evicted. It is in clear violation of international commercial law and tramples upon the spirit of contract.

Contrary to what it claims, it is the US that covets control of the canal. This is a key part of its so-called "Donroe Doctrine", aimed at consolidating US supremacy in the Western Hemisphere. In November last year, the White House published its National Security Strategy, stating that "non-hemispheric competitors have made major inroads" in the region, to "disadvantage us economically in the present, and in ways that may harm us strategically in the future".

It is the Panamanian government that controls the canal, a vital artery for global trade, facilitating the passage of around 5 percent of the world's maritime commerce. The efficient operation of the Balboa and Cristobal ports by CK Hutchison has been pivotal in ensuring the steady flow of goods and services across continents. The concession it was granted was renewed in 2021 for 25 years. The annulment of CK Hutchison's concession by Panama, followed by the abrupt takeover of the ports, not only severely disrupts the established management of the ports' operations, but causes huge financial costs to the Hong Kong company. Over the years, the company has invested heavily in the development of the ports to turn them into modern and efficient facilitators for container traffic.

The Chinese Foreign Ministry as well as the Hong Kong Special Administrative Region government have thus expressed justified, unequivocal opposition to the unlawful move, vowing to take decisive action to safeguard the legitimate rights and interests of Chinese enterprises.

Panama has a responsibility and obligation to protect the company's assets. If any losses are incurred during this period, CK Hutchison will be entitled to claim compensation from the Panamanian government.

By capitulating to the US' pressure with this shameful move, Panama has compromised its sovereignty. In response to this egregious act, as some analysts noted, the Chinese side can adopt a multifaceted strategy to defend its interests and hold accountable those responsible for this infringement. For instance, legal avenues should be rigorously pursued. CK Hutchison has already initiated arbitration proceedings under the rules of the International Chamber of Commerce. These efforts should be supported. The Panamanian side should face the full consequences of its unlawful conduct.

Panama's blatant collusion with US policy objectives stands as a stark and unsettling reminder of the challenges China confronts in navigating an increasingly complex international landscape — one where economic interests are no longer merely intertwined but deeply, and often coercively, entangled with geopolitical machinations and power plays.

The illegal seizure of the Panama Canal ports is also a critical litmus test of the international community's resolve to uphold the fundamental principles of justice, fairness and the rule of law in global affairs. The stakes could not be higher: to falter at this moment is to embolden unilateralism and set a dangerous precedent for the arbitrary disruption of global infrastructure and economic cooperation.

The international community, therefore, should rise to this challenge with unwavering resolve, sending a clear message that such blatant power grabs and violations of sovereign agreements will not be tolerated.