The recent court ruling giving the United States a win in a tussle for control of the Panama Canal is expected to prove an important “test case” for how China responds to the challenge to its interests and influence across Latin America.
Analysts said there were a range of tools it could use, including diplomatic pressure on Panama, using its economic might to seek support from friendly countries and backing a legal challenge to the ruling.
Last week, Panama’s Supreme Court voided a 25-year contract held by a subsidiary of Hong Kong conglomerate CK Hutchison Holdings to run the Balboa and Cristobal ports on the Panama Canal. The firm is now challenging the decision.
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