Possible Chinese Reaction to Panama Port Issues: President Mulino says ‘Nothing’s Going to Happen’
President Mulino stressed that Panama has withstood much more difficult times than today but did acknowledge that China is “a very important country in the world”
Panama: When asked how the Panamanian State is preparing to face possible measures from the Chinese government after the departure of Panama Ports Company (PPC) from the ports of Balboa and Cristóbal, the President of the Republic, José Raúl Mulino, responded that he never speculates on international political issues. “I don’t know what China or the Chinese government has on their agenda. When it arrives, it will be evaluated, and we will respond accordingly to whatever they decide to do,” the president declared during his weekly press conference.
Mulino added his personal opinion: “Nothing is going to happen. Believe me, nothing is going to happen. And if it does, we’ll see.” President Mulino questioned what concrete actions China might take against Panama. “What is China going to do against Panama? Let’s see. From a trade standpoint, from a support standpoint, what has Panama gained from its relationship with China?” Mulino asked. Although he acknowledged that China is “a very important country in the world,” the president emphasized that Panama has weathered much more difficult times. “Panama has withstood much more difficult times than that particular moment,” he stated.
Trade Interdependence Between Panama and China
Mulino emphasized the commercial dependence between the two nations. “The truth is that China needs Panama a lot, a lot. Everything they produce passes through the Panama Canal,” the president noted. He also highlighted the role of the Colón Free Zone in this trade relationship. “Much of what these people sell is sold through the Colón Free Zone. And all the gas that reaches them passes through the Panama Canal,” Mulino explained.
Context of the Ruling on the Ports
On February 23, after the Supreme Court ruling that declared the contract granting Panama Ports Company the operation of the Balboa and Cristóbal ports unconstitutional became final, Mulino announced measures to ensure the uninterrupted operation of these facilities. Through an occupation decree, the State guarantees the use of the ports while respecting property ownership. “This is about protecting national interests and maintaining port operations, which are fundamental for world trade,” the president emphasized in his address to the nation. Mulino clarified that this measure does not constitute an expropriation, but a temporary action to preserve the operational continuity of terminals that are strategic for the Panamanian economy and global trade.
Mulino: ‘All We Encountered was Arrogance’ when Seeking a Solution with Hutchison
Panama: President José Raúl Mulino stated that throughout most of 2025, several meetings were held with top executives of the CK Hutchison Holdings conglomerate in New York and Washington to find a solution to the port issue. “All we encountered was arrogance. Nobody is going to kick us out of the ports. Nobody is going to force us out of the ports,” the president declared during his weekly press conference. President Mulino added that those who tried to maintain control of the terminals “chose the wrong president and government because here we do what needs to be done.”
President Mulino reported that the Foreign Ministry absolutely rejected certain assertions related to the case and that this message was conveyed to the Chinese ambassador in Panama. Mulino was emphatic in stating that the government will not allow Panamanian sovereignty over port administration to be questioned. The ruling that declared the concession contract granted to Panama Ports Company (PPC) unconstitutional is now final and has revoked the concession to operate the ports of Balboa, on the Pacific coast, and Cristóbal, on the Atlantic coast. The decision was published in the Official Gazette on Monday, February 23.
Legal Context
In its decision, the Supreme Court concluded that, after examining the contract-law, it was “harmful to the interests of the community,” as it directly violated public order and contravened the Constitution. The Supreme Court clarified that the declaration of unconstitutionality should be interpreted as meaning that no concession was granted. Mulino questioned the transparency of the outgoing company.
“What they’re saying is completely inconsistent with what they did. It’s not like they ended a contract with a transparent company,” the president stated. He also criticized sectors of Panama who, he said, “are trying to take advantage of the situation” and are now demanding answers, explanations, and figures, “when they never cared about this before.” “And that company did as it pleased in Panama for decades since it arrived in this country,” Mulino added.
