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CK Hutchison, Hong Kong’s parent from Panama Ports Company (PPC), denied allegations on Wednesday that he owes $ 1.2 billion in Panama – the diapities that have surfaced while American -Chinese tensions are intensifying on the Canal Infrastructure and Regional Infrastructure.
The Panama General Controller announced this week that an audit of Panama Ports Company (PPC), a subsidiary of the Hong Kong conglomerate, CK Hutchison, discovered irregularities in the renewal of a 25 -year concession agreement.
Allegations are “absolutely contrary to reality,” said PPC in a statement.
“At no time did PPC respect the payments corresponding to the prices applicable to Panama port operators for the container movement,” the company said in a press release.
The dispute surfaced the same day as the American defense secretary, Pete Hegseth, arrived in Panama for a regional security summit.
Hegseth met the Panamanian president José Raúl Mulino and then attended a ribbon cup ceremony for a new quay funded by the United States at the Naval base of Vasco Nuñez de Balboa. On the podium, Hegseth said that the United States “would bring the Panama channel to the influence of China.”
The dispute intervenes in the middle of the growing geopolitical friction in the region. China is the largest trading partner in Panama and a dominant force in Latin American infrastructure, largely due to its request for raw materials and basic products (that is to say soy). About 20% of all cargoes crossing the canal are at their destination or from China, making it the second larger user after the United States.
Beijing quickly condemned CK Hutchison’s recent decision to sell its Panama port operations to a consortium led by the director of assets based in the United States BlackRock.
The $ 19 billion agreement, which is expected to generate a substantial product for the company founded by the billionaire of Hong Kong, Li Ka-Shing, was publicly celebrated by US President Donald Trump for the decision to “resume” control of the strategic navigable way.
Since his entry into office in January, Trump has repeatedly said that the United States needed control of the Panama and Greenland channel “for national security”.
While Panama has officially retired from the Chinese belt and the road initiative (BRI), trade between China and Latin America remains strong.
Brazil, now the largest regional trading partner in China, is not a signatory BRI highlighting Beijing’s economic footprint in the region is likely to remain resilient.
Currently, the The Trump administration has a 104% rate on imports from China. Beijing has applauded additional prices on American products, President Xi Jinping declaring Wednesday that China will build a “common future with neighboring countries”.
Later in the day, Trump announced a 90 -day break on new prices for certain countries, but increased the existing prices imposed on imports from China at 125%, “in force immediately”.