The threat of the newly elected US President Donald Trump to return the Panama Canal "to protect US national security" may adversely affect companies from Hong Kong and mainland China operating in Panama. This opinion of experts is given by the newspaper South China Morning Post (SCMP).
The publication recalls that the Hong Kong company CK Hutchison Holdings is a major player in Panama, as its subsidiary Hutchison Ports PPC has been operating two ports on both sides of the canal since 1997.
If the new Trump administration manages to put pressure on Panama to abandon the concession with Hutchison Ports, then the impact on Chinese, including Hong Kong, business “around the world will be significant“, he believes.
In turn, experts indicate that they are not sure that Trump will fulfill his threat “because it would look bad and damage US relations with Latin American countries if he so clearly ignores Panama's authority. “This will also further worsen US-China relations, as all mainland Chinese and Hong Kong companies will be forced to leave the area“, the expert added.
SCMP recalls that Trump has complained about the "excessively high prices" imposed on American ships and that China is influencing this strategic route for the global economy. The US president is adamant that he will not allow China to manage the Panama Canal.