Panama is trying to ease tensions with China after port-related disputes

Panamanian President José Raúl Mulino sought Thursday to ease tensions with China, adopting a conciliatory tone after recent frictions related to the maritime and port sector.

These tensions arose following a Panamanian court ruling that led to the loss of port concessions held by the Chinese group CK Hutchison. In response, Panamanian officials cited an increase in inspections of Panamanian-flagged vessels in Chinese ports, which were perceived as retaliatory measures.

José Raúl Mulino, however, downplayed these concerns, stating that such checks remained common practice in international maritime transport. He also pointed out that similar practices were observed in other major maritime registries, such as those of Liberia and the Marshall Islands.

“We don’t want any problems with China,” the president said during a visit to the port of Balboa, near the Panama Canal. He expressed hope for a swift return to normal political relations between the two countries.

This statement comes after the Panamanian foreign minister publicly suggested a link between Chinese inspections and the court decision concerning CK Hutchison, which had contributed to straining diplomatic relations.

The Chinese group has also initiated arbitration proceedings for approximately $2 billion after losing its port concessions, adding an economic and legal dimension to the dispute.

In this context, the Panamanian authorities seem to favour de-escalation in order to preserve their trade relations with China, a major economic partner, while managing the consequences of a sensitive dispute.

While tensions remain palpable, José Raúl Mulino's conciliatory attitude could pave the way for a gradual normalization of relations between Panama and Beijing.