China vows to protect interests after Panama ruling

China said on Friday it would take "necessary measures" to protect the interests of Chinese companies after a ruling by Panama's top court annulled a concession allowing a subsidiary of CK Hutchison to operate ports at the strategic Panama Canal. Foreign Ministry spokesman Guo Jiakun said the ruling lacked legal basis, adding that "the Chinese side will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies." Panama Ports Company (PPC), a CK Hutchison subsidiary, has held contracts since the 1990s to operate container terminals at the canal's Pacific and Atlantic entrances, separate from the waterway's operations. The decision could disrupt CK Hutchison's proposed US$23 billion sale of dozens of ports worldwide, including the Panamanian terminals, to a consortium led by BlackRock and Mediterranean Shipping Company. PPC on Friday said it had not been notified of the court's decision but considered the ruling inconsistent with the legal framework and laws that had allowed it to operate the ports. "The new ruling, based on ⁠available information, lacks legal basis and jeopardises not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity but also the rule of law and legal certainty in the country," it said in a statement. PPC said it had invested US$1.8 billion in infrastructure and technology in nearly three decades operating the Panamanian ports. Panama has been under pressure from the Trump administration to divest Hutchison's stake in the canal and facilitate the operation of the ports to a US-led consortium. (Agencies)