Beijing has accused Washington of leading a smear campaign over its ownership of two ports
The US has announced a six-nation coalition aimed at pressuring China to relinquish its interests in two ports in the Panama Canal, accusing Beijing of infringing on Panama’s sovereignty and politicizing global trade. China has called the claims “baseless.”
The development is part of a pattern of US efforts to push China out of Latin America. The US National Security Strategy calls for non-Western “competitors” to be prevented from owning or controlling key assets in the Western Hemisphere.
Last year, US President Donald Trump claimed that China is “operating the Panama Canal” and threatened to “take it back.”
The US State Department issued a joint statement on Tuesday with Bolivia, Costa Rica, Guyana, Paraguay, and Trinidad and Tobago, saying they support Panama against what they describe as external pressure from China.
”Any attempts to undermine Panama’s sovereignty are a threat to us all,” the statement read, adding that Panama “must remain free from any undue external pressure,” and that freedom in the region is “non-negotiable.”
Read more Dmitry Trenin: America First goes globalChina rejected the accusations, with the Foreign Ministry hitting back on Wednesday against what it called a smear campaign.
”It is the United States that is politicizing and over-securitizing the port issue... hypocritically posturing and spreading rumors and smears everywhere,” spokesman Lin Jian said, dismissing the claims as “baseless and a complete distortion of facts.”
Lin urged the countries involved not to “be deceived or used by forces with ulterior motives” regarding the port inspections, which he said were conducted lawfully.
The US-led campaign follows a ruling in January by Panama’s Supreme Court that annulled contracts held by a subsidiary of Hong Kong-based CK Hutchison Holdings for the Balboa and Cristobal, two key ports at the canal’s entrances – a move that the US has backed.
The Chinese company, which managed the terminals for nearly three decades, has contested the ruling, alleging unlawful expropriation, and has launched international arbitration, seeking over $2 billion in reparations.
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