China is asking state-owned companies to suspend negotiations on new contracts with Panamanian companies, Bloomberg reported on Thursday.
"China is asking state-owned companies to suspend negotiations on new projects in Panama as part of Beijing's retaliation campaign after this Central American country annulled its contract with the Hong Kong company CK Hutchison for the management of two ports on its strategic canal," the agency reports, citing informed sources.
According to the agency's sources, "such a decision could derail potential investments worth billions of dollars."
Additionally, the sources noted that Beijing has also reached out to shipping companies, urging them to consider rerouting cargo through other ports if it does not incur significant additional costs.
The day before, China criticized the decision of the Panama Supreme Court, which found the concession agreement for transferring two ports on both sides of the Panama Canal to the Hong Kong company CK Hutchison unconstitutional.
"The decision is legally absurd and ridiculous, containing logical flaws," stated the Hong Kong and Macau Affairs Office of the State Council of China.
Last year, CK Hutchison agreed to transfer the concession for managing the canal to a consortium led by the American company BlackRock, but the deal was blocked by China.
