Hong Kong (China) investors are reconsidering investments in Panama after a dispute related to a concession contract to operate 2 seaports held by a subsidiary of CK Hutchison Group, said Hong Kong Special Administrative Region (China) Chief Executive Li Jiachao.
In a speech on February 10 at the regular meeting of the Executive Council, the key policy-making body, Mr. Li Ka-chao also called on Panamanian authorities to ensure that Hong Kong (China) businesses operating in this country are treated "fairly and reasonably".
The incident has weakened investors' confidence in Panama's business environment, so they will review current and future investments in this country," he said.
Mr. Li Ka-chao affirmed that Hong Kong (China) opposes "foreign agencies using coercive measures, putting pressure or unfair political actions in international trade".
He said that the Chinese Ministry of Foreign Affairs has declared that it will take all necessary measures to protect the legitimate rights of Chinese businesses, and the Hong Kong (China) government will coordinate and fully support this effort.
The statement of Hong Kong (China) leader Li Ka-chao was announced a few days after Hong Kong (China) Director of the Department of Economic and Trade Development Qiu Yinghua summoned the Panamanian Consul General in Hong Kong to condemn the Panamanian court's ruling to cancel the contract to operate 2 ports in the Panama Canal of CK Hutchison company.
The ruling issued by the Panamanian Supreme Court last month declared that the agreement allowing Panama Ports Company (PPC), a subsidiary of CK Hutchison, to operate the ports of Balboa and Cristobal was unconstitutional.
Panama Ports Company has managed these ports since 1997 and extended the contract for another 25 years in 2021.
In response, Panama Ports Company brought the Panamanian government to international arbitration, demanding "large-scale" damage compensation.
China also warned Panama that it would pay a price if it continued its current position.
