China backs Panama after warning that port sale could threaten canal neutrality

By Saadet Gokce

ISTANBUL (AA) - China on Wednesday voiced support for Panama’s sovereignty following concerns that a planned port sale of 43 ports to a single consortium could undermine the neutrality of the Panama Canal.

“China supports Panama’s effort to uphold independence and firmly defend its lawful rights and interests as an independent sovereign country,” Foreign Ministry spokesman Lin Jian told a press briefing in Beijing.

He added: “On the navigation of relevant country’s vessels, China will, as always, respect Panama’s sovereignty over the Canal and recognize the Canal as a permanently neutral international waterway.”

Ricaurte Vasquez, the canal’s administrator, warned Tuesday that the planned sale of 43 ports operated by Hong Kong-based CK Hutchison to a consortium led by Mediterranean Shipping Company subsidiaries and BlackRock could risk the canal’s neutrality, according to The Financial Times.

“There is a potential risk of capacity concentration if the deal comes the way it is structured as we understand right now,” Vasquez said. “If there is a significant level of concentration on terminal operators belonging to an integrated or one single shipping company, it will be at the expense of Panama’s competitiveness in the market and inconsistent with neutrality.”

Responding to the developments, Lin said China’s State Administration for Market Regulation and other authorities had already commented “more than once” on CK Hutchison’s overseas asset sales.

“Let me stress more broadly that China all along firmly opposes economic coercion and domineering and bullying practices,” he said.

The deal has drawn attention in Washington, where US President Donald Trump has repeatedly accused China of controlling the Panama Canal and said the US should take back control of the waterway, which links the Atlantic and Pacific oceans and cuts shipping time and expenses drastically.