The Panama Canal has been thrust into the middle of a power struggle between the U.S. and China, the world's two largest economies.

China calls court ruling against Hong Kong firm CK Hutchison on Panama Canal ports 'absurd' and 'shameful'.

The Panama Canal has been thrust into the middle of a power struggle between the U.S. and China, the world's two largest economies.

President Mulino responds to China, insists his country upholds the rule of law and and has an independent court system.

It follows a contentious decision from Panama's top court to rule against a Hong Kong-backed firm’s right to operate two key terminals on the waterway.