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Panama's comptroller general has filed lawsuits aimed at stripping a powerful Chinese conglomerate of its grip on both ends of the Panama Canal, a move that threatens to unravel China's decades-long strategic foothold in one of the world's most critical maritime trade routes, Nikkei Asia reported.
Anel Flores, Panama's top fiscal watchdog, confirmed on Wednesday that he has lodged two lawsuits with the country's Supreme Court, challenging the legality of a 25-year port concession renewal granted in 2021 to CK Hutchison, a Hong Kong-based conglomerate controlled by Chinese billionaire Li Ka-Shing. According to Nikkei Asia, Flores labelled the agreement as "abusive to the country's interests" and accused the renewal process of being riddled with "irregularities." The ports in question, Cristobal, on the Caribbean entrance to the canal, and Balboa, on the Pacific, are operated by Panama Ports Company, a subsidiary of Hutchison Port Holdings. These ports are not only critical to Panama's trade but hold strategic significance for global shipping, making their control a geopolitical flashpoint. Flores' legal offensive comes at a volatile moment. Earlier this year, CK Hutchison attempted to offload its 90% stake in Panama Ports and its controlling interests in dozens of ports across 23 countries to a consortium led by BlackRock and MSC, a European shipping giant. The deal was reportedly aimed at reducing scrutiny from the U.S., particularly under the Trump administration, which had vowed to "take back" influence over the canal, Nikkei Asia noted. However, the sale has faced fierce backlash from Beijing, including a state-backed media campaign and an antitrust probe. Talks with Western buyers have stalled, and CK Hutchison is now seeking a "major" Chinese investor to join the consortium, further raising alarm over China's deepening economic entrenchment in strategic infrastructure, Nikkei Asia reported. "This is about Panamanian sovereignty," Flores declared, questioning why foreign powers should determine the fate of national assets. As Panama reviews the legal status of the deal, the controversy shines a spotlight on China's global port empire, built on questionable contracts and growing international concern. (ANI)
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