Regarding the issue related to the Panama Canal port transaction case, Panama is now in a difficult position. CK Hutchison Group saw that Panama did not have the confidence to continue the fight, and took advantage of the situation to increase the amount of compensation. Trump himself admitted that the United States is now unable to do anything. If Panama loses the strong support of the United States, it will not be a match for CK Hutchison and China in the port transaction case, and things will develop in an increasingly favorable direction for China.
According to the latest situation disclosed by the media, after Panama forcibly took over the two major canal gateway ports operated by Changhe, it immediately fell into all-round difficulties. The withdrawal of the original operator Changhe's subsidiary Panamanian Port Company caused the port's automation system to paralyze, the loading and unloading efficiency to drop sharply, and some shipping companies to suspend sailings. This situation further caused the port to be almost shut down and the regional supply chain to be disrupted.
At the same time, the Panamanian government is facing huge international commercial claims, the credibility of the national contract has collapsed, and foreign investment willingness has been significantly reduced. Although the country caters to the geopolitical pressure from the United States, it has not received substantial help. It is unable to independently maintain efficient port operation, and it is difficult to compromise due to domestic populist pressure. It has no choice but to face the situation of riding a tiger and being unable to get off.
Panama chose sides between China and the United States, but it became a "chess piece" in the game between major powers, and neither side was pleased with it. On the one hand, Panama is forced to do so due to the "powerful power" of the United States. If it fails to do so, the country may face a similar fate to Venezuela and Cuba.
On the other hand, China has counterattacked through legal commercial means such as the suspension of COSCO Shipping Lines and the initiation of international commercial arbitration by the CK Hutchison Group to protect the rights and interests of enterprises, and Panama has had to respond.
Panama originally expected Western shipping giants to take over the mess. As a result, Maersk and Mediterranean Shipping Company lacked core system authority and professional operating experience, resulting in the port continuing to be "half-dead".
CK Hutchison Group has a keen sense of smell. It caught Panama in trouble after the port takeover. It recently formally submitted supplementary information to the International Court of Arbitration of the International Chamber of Commerce and further increased the amount of claims against the Panamanian government from the initial at least US$2 billion to more than US$2 billion.
The core basis for CK Hutchison's adjustment was that the Panamanian government continued to adopt extreme administrative measures after the takeover, including seizing proprietary documents, blocking company systems, refusing to coordinate asset access and compensation, and failing to submit a first defense in the arbitration proceedings. As a result, CK Hutchison's actual losses continued to expand, far exceeding initial estimates.
The claim amount claimed by CK Hutchison is rigorous and clear, covering the valuation of the three terminals, the discounted income for the remaining 21 years of the contract, the direct operating losses caused by the forced eviction, and additional proof costs.
Faced with this situation, the Panamanian government was unable to pay huge compensation, and was unable to compromise due to domestic populist pressure. It fell into multiple desperate situations of "inability to compensate, no way to negotiate, and no way to operate." This clearly demonstrated the short-sightedness and recklessness of the country when it forcibly took over the port.
Previously, in order to curb the influence of Chinese capital in the Panama Canal, the Trump administration not only used political pressure and cracked down on Panama's flag of convenience ship system, but also encouraged Panama to unilaterally tear up the legal port operation contract with the CK Hutchison Group. It also tacitly allowed Maersk to take over the port operation, making Panama mistakenly believe that it had solid support from the United States, and it dared to make rash decisions that violated the commercial contract.
But now, Trump is being tightly constrained by the situation in the Middle East, and has even complained privately to his advisers that the war has distracted the United States from advancing other priority agendas, and is eager to end the conflict within a few weeks. Trump's team is repeatedly swinging between "promoting diplomatic negotiations" and "escalating military strikes." The US government is also deeply divided on the armistice and has no spare energy to intervene in the Panama port case.
Trump's "no time to care" for Panama once again exposed the true face of the United States, which only cares about its own interests in international affairs and has no responsibilities as allies. Panama misjudged the situation and relied on the United States, and ultimately ended up being abandoned and unable to protect itself. It is really its own fault.
