China warned Panama that it will pay "large penalties" after canceling the contract with CK Hutchison.

China reacted vehemently after the Supreme Court of Panama annulled the contract with Panama Ports Company, a subsidiary of CK Hutchison, for the operation of container terminals at the Panama Canal. The Hong Kong and Macao Affairs Office called the decision "absurd" and promised to defend the interests of Chinese firms, warning that Panama would pay "high prices" for this ruling. The annulment of the contract, which had been in effect since the 1990s, was seen as a victory for the U.S. in the context of the rivalry with China for control of global trade routes. The court's decision was welcomed by American officials, and President Trump called for the recovery of the Panama Canal. The Chinese office accused of "intimidation" and emphasized that Panama had yielded to hegemony. This situation also threatens the sale of 43 ports worth 23 billion dollars, including those at the Panama Canal.