Mulino tells Beijing the Panama follows rule of law over Canal issue

Panamanian President Jose Raul Mulino said he firmly rejects a statement from China's Hong Kong and Macau Affairs Office after a court ruling annulled CK Hutchison's contract to operate two ports at the Panama Canal.

China earlier warned Panama there would be "heavy prices" to pay, calling the Supreme Court decision "absurd," "shameful and pathetic."

Mulino wrote on X that: "Panama is a state governed by the rule of law and respects the decisions of the Judicial branch, which is independent from the central government."

CK Hutchison expressed strong opposition to Panama's ruling, saying that it will continue to consult with its legal counsel.

Meanwhile, Panama Ports Company S.A. (PPC), an indirect 90-percent-owned subsidiary of CK Hutchison, has initiated arbitration against Panama.