How can China react to Panama Canal ruling that boosts US push to counter its influence?

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.

In his inaugural address last year, US President Donald Trump vowed to regain control of the canal, which Washington handed over to Panama in 1999, alleging it was “operated by China”.

He has since made clear his goal to assert US dominance in the Americas as part of his National Security Strategy.

“Instead of relying on traditional diplomatic measures, the Trump administration is showing it is not afraid of using pressure tactics to achieve its goal in the western hemisphere,” William Yang, a senior analyst at the International Crisis Group, said.

South China Morning Post