Panama’s President José Raúl Mulino has taken a firm public stance following mounting pressure from China over the cancellation of the Panama Ports Company (PPC) concession, making clear that Panama will not violate its Constitution or interfere with its courts to satisfy any foreign power.
Speaking after comments issued by authorities in Hong Kong and echoed by Beijing, Mulino emphasized that the decision to annul the PPC contract was made solely by Panama’s Supreme Court and must be respected by the Executive Branch, regardless of economic or political consequences.
His message was direct – Panama is a sovereign, democratic country governed by laws, not by external threats.
A Clear Line Between Law and Politics
At the center of the dispute is a Supreme Court ruling that declared the PPC concession unconstitutional. PPC is linked to CK Hutchison, a Hong Kong-based conglomerate with strong ties to China. After the ruling, Chinese officials warned that Panama could face political and economic consequences if it did not reverse course.
Mulino rejected that premise outright.
He explained that Panama operates under a strict separation of powers. Unlike centralized political systems, Panama’s Executive Branch cannot instruct judges, overturn court rulings, or selectively apply the Constitution.
In simple terms – once the court decides, the government must follow.
Mulino stressed that if the ruling had gone the opposite way, the government would have respected it just the same. That consistency, he argued, is exactly what defines a functioning democracy.
What Message Is China Sending?
For many observers, the pressure coming from China raises a deeper concern. The implicit demand is that Panama should override its own constitutional framework to protect a commercial concession.
From Panama’s perspective, that is not a negotiation – it is an unacceptable request.
The message being sent by China, whether intentional or not, is that economic leverage should outweigh constitutional law. Mulino’s response makes it clear that Panama rejects that logic.
Panama is not refusing dialogue, nor is it severing diplomatic or commercial ties. What it is refusing is the idea that sovereignty is conditional.
Standing Between Two Superpowers
This situation places Panama in a delicate position. The country has faced pressure in the past from the United States as well, particularly regarding the Canal and global shipping routes. Mulino acknowledged that Panama exists in a geopolitical reality shaped by major powers.
However, he made clear that neutrality does not mean submission.
Panama is not choosing sides between the U.S. and China. Instead, it is choosing its own legal framework.
What Happens Next With the Ports
Operationally, nothing changes immediately. PPC continues to operate the ports of Balboa and Cristobal while the legal process is finalized. A planned transition will follow, during which Panama will assume greater oversight.
Mulino has already indicated that future port management will not repeat the same structure. The country will no longer grant a single company control over both ports under one concession. Each port will be handled separately under a new framework that prioritizes national oversight.
Importantly, the President has also stated that Panama recognizes PPC’s right to pursue international arbitration. Panama, in turn, will defend itself using the same legal channels.
A Message to the Panamanian People and the World
Mulino’s position is ultimately aimed inward as much as outward.
To Panamanians, the message is that the government will not trade constitutional integrity for short-term stability.
To the international community, the message is that Panama is open for business, but not at the expense of its institutions.
As Mulino stated plainly, Panama is a dignified country, and it will not be threatened by any nation on Earth.
Article written on: February 8, 2026
