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China reports that Xinhua says it is not acceptable for third parties to interfere with Panama ties.

During a meeting between the Panamanian Foreign Ministry Javier Martinez-Acha and China's foreign minister Wang Yi, Xinhua's official news service reported that Beijing was prepared to 'deepen practical collaboration with Panama'. It also urged Central American countries?to protect Chinese firms' 'rights'.

Wang, who met Acha at a United Nations Security Council Meeting in New York said 'China-Panama ties shouldn't be subjected to third-party intervention, Xinhua reports. This is a reference to U.S. pressuring over Chinese-linked facilities near the Panama Canal which handles 5% global maritime trade.

The meeting follows months of tension about the future of the two major container terminals located at Balboa and Cristobal near the Pacific and Atlantic entries to the canal, but operated separately.

Panama's Supreme Court ruled in late January that the legal framework supporting a 1997 concession - and a subsequent 2021 extension - which allowed a subsidiary listed on the Hong Kong Stock Exchange, CK Hutchison, to operate terminals, was unconstitutional.

China and Hong 'Kong authorities oppose the ruling against CK -Hutchison port concessions. They call it "an act of bad faith."

The cancellation was a result of U.S. pressure to curb Chinese influence in the area around the canal.

CK 'Hutchison has launched an international arbitration against Panama, accusing the authorities of stealing property. They have also demanded damages in excess of $2 billion.

(source: Reuters)