Panama promotes itself “as the bridge of the world, heart of the universe” but lately the narrow Central American Isthmus and its namesake canal that joins the Atlantic to the Pacific have become the setting for a bitter clash between the world’s two preeminent economic superpowers.

CK Hutchison, the Hong Kong-based parent of Panama Ports Company (PPC), denied on Wednesday allegations that it owes $1.2 billion to Panama—disputes that surfaced as US-China tensions intensify over canal infrastructure and regional influence.

The United States will not allow China to "threaten" the operations of the Panama Canal, US Defense Secretary Pete Hegseth warned during a visit to the Central American nation.