Panama’s President Pushes Back Against China
On Thursday, Panama’s conservative President, Jose Raul Mulino, issued a clear warning to the Chinese Communist Party, making it known that threats to his nation would not be tolerated. This response came in light of a recent decision concerning the Panama Canal contracts linked to firms associated with the regime.
During a press conference, Mulino seemed to express disdain for the totalitarian nature of the Chinese government, suggesting it was inferior to Panama’s democratic system. Still, he emphasized that he didn’t want to “sour the milk” any further regarding relations. He reiterated that due to the separation of powers in Panama, the president cannot intervene in decisions made by the Supreme Court. He firmly stated that Panama “will not allow itself to be threatened” should tensions escalate with the Communist Party.
Last week, the Supreme Court ruled that two contracts given to the Panama Ports Company (PCC), a subsidiary of Hong Kong’s Hutchison Port Holdings, were unconstitutional as they posed excessive harm to the Panamanian government. This contract granted the company control over port areas on both sides of the Panama Canal, a situation that President Donald Trump criticized for providing the Chinese company with critical access to block the waterway. CK Hutchison, the parent company involved, is owned by billionaire Li Ka-shing, who has publicly supported the Chinese regime. The first contract under review was signed back in 1997, prior to the Communist Party’s dissolution of Hong Kong’s autonomy as per the “one country, two systems” principle.
As a consequence of this ruling, the Panamanian government will now manage the contractual obligations related to port development on behalf of PCC.
This decision outraged the Chinese government. In Hong Kong, the puppet regime demanded that Mulino take steps to override the Supreme Court’s ruling, expressing strong disagreement with the decision.
The Hong Kong government stressed that the Panamanian government should ensure the rights of companies are respected and that Hong Kong firms operating in Panama are treated fairly, even suggesting those companies rethink their investments in the country.
The Chinese Ministry of Foreign Affairs reiterated on Thursday that the Supreme Court’s ruling is viewed as a harmful act that disregards facts and undermines the legitimate rights of Chinese and Hong Kong companies. Reports surfaced this week—though not denied by the Ministry—indicating that the Communist Party might halt future significant projects in Panama and consider canceling existing contracts.
In addressing the ongoing pressure, Mulino stated, “Unlike China, Panama’s executive branch does not interfere with our judiciary.” He underscored the distinction between the Chinese government structure and Panama’s democratic institutions.
He expressed that the court’s decision is final and must be respected, adding that if it had been a different ruling, it too would have been obeyed.
While Mulino refused to escalate tensions further, he made it clear he would not accept external pressure that undermines the Supreme Court’s authority. “We hope this situation does not escalate; there is no reason for it to,” he noted, affirming that Panama, as a dignified nation, will not be intimidated by any foreign power.
Mulino, who was elected president in 2024 with aspirations to control mass immigration towards the United States, highlighted the significance of this issue. Panama is known for the Darién Gap, a perilous jungle route previously used for human trafficking, predominantly for Venezuelans escaping socialism. The influx of over 80,000 individuals crossing the river caused hazardous conditions and significant environmental damage.
Thanks to efforts made by both Mulino and President Donald Trump’s administration, activities in the Darién Gap plummeted by nearly 100% by August. Doctors Without Borders announced in October that they would cease operations in Panama due to the sharp decrease in migrant numbers attributed to changes in regional policies.
Although Trump and Mulino have collaborated effectively on immigration matters, the Panama Canal—a gift from the U.S.—has created some friction. Secretary of State Marco Rubio’s recent visit to Panama highlighted shared concerns over China’s increasing influence in the region. However, Mulino pushed back against U.S. demands for a military presence in the canal and argued against the existence of a significant Chinese military presence nearby. His discussions with Rubio were fruitful, culminating in Panama’s decision to withdraw from China’s Belt and Road Initiative.
