2 days ago
- Business
- South China Morning Post
China ‘respects Panama Canal neutrality' amid warning over CK Hutchison deal
China's foreign ministry has said it respects Panama's sovereignty and recognises its canal as a neutral international waterway, after the head of the strategic channel warned that the CK Hutchison ports deal could jeopardise its impartiality.
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Panama Canal Authority administrator Ricaurte Vasquez said in an interview published on Tuesday that CK Hutchison Holdings' US$23 billion deal to sell its overseas ports to a consortium led by US investment giant BlackRock and shipping firm MSC could result in a concentration of operators that would be 'inconsistent with neutrality'.
He also reportedly said that a request from the US government to allow its ships to pass through the canal free of charge was not feasible under the waterway's current regulations, while suggesting the authority should become a terminal operator itself.
Responding to a question about recent reports on the matter, Lin Jian, the spokesman for China's Ministry of Foreign Affairs, said on Wednesday that Beijing had always firmly opposed economic coercion, domineering and bullying.
'On the navigation of relevant country's vessels, China will, as always, respect Panama's sovereignty over the canal and recognise the canal as a permanently neutral international waterway,' Lin said.
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'We support Panama's effort to uphold independence and firmly defend its lawful rights and interests as an independent sovereign country.'
