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Panama’s government on Monday launched an audit of a Hong Kong company that operates ports on both ends of its canal, after US President Donald Trump warned he wanted to take back the waterway because of alleged Chinese influence.
Trump reiterated that in his inaugural address on Monday He has drawn criticism in recent weeks About the Panama Canal, which handles about 3 percent of global seaborne trade each year.
in response, panamaThe Comptroller General’s office released a video on social media platform X of about 10 men and women wearing suits from a bus to begin an audit at the local office in Hong Kong-based Hutchison Port, seen as a nod. To Trump.
“Our auditors have come today [the company] Initiating a comprehensive audit aimed at guaranteeing efficient and transparent use of public resources,” the Office of the Comptroller General said in X.
Hutchison Ports, the port arm of the Hong Kong-listed conglomerate CK Hutchison HoldingsOperates 53 ports in 24 countries including the UK, Germany and Hong Kong.
In 1997, the year Hong Kong was returned to Chinese rule by the UK, it received its first concession to operate two ports, one at each end of the canal. The concessions were renewed in 2021.
Controlled by the family of Li Ka-shing — one of Asia’s richest — CK Hutchison Holdings operates a vast global infrastructure portfolio, including the UK’s Northumbrian Water and the Australian gas network.
China does not control the canal, but some officials in Washington are concerned about the presence of Chinese companies in the area. Hong Kong’s government has become more closely aligned with China since a crackdown on pro-democracy protests in 2019 and the introduction of tougher national security laws.
CK Hutchison did not immediately respond to a request for comment on the Panama audit.
The US oversaw the building of the canal, which opened in 1914, but returned full control to the Central American country in 1999. Trump called the move a “mistake” and condemned the high prices.
Fees for crossing the canal, which uses fresh water to operate the locks, have risen significantly A major drought in 2023 leading to restrictions and later changes in how slots are allocated.
“We’ve been treated very badly by this stupid gift that should never have been done,” Trump said. “We didn’t give it to China, we gave it to Panama and we’re taking it back.”
Panama has long been one of the United States’ closest allies in Central America and has been trying to stop immigration to the United States through it. The infamous Darien Gap. The country cut ties with Taiwan to recognize China in Trump’s first term in 2017.
Panama President Jose Raul Mulino – A law and order conservative – issued a strongly worded statement on Monday that Trump “absolutely rejects” and that the canal will remain Panamanian.
He added that no nation was interfering in the administration of the canal and that dialogue was the best way to resolve the issues raised by Trump. He also disagreed with Trump’s characterization of Panama returning the canal to the United States.
“The canal was not given by anyone, it is the result of a generational struggle that ended in 1999,” he wrote in X.
