China to Pause Panama Deals After Ports Contract Cancelled

China is asking state firms to halt talks over new projects in Panama, as part of Beijing’s broader retaliation after the Central American country voided CK Hutchison Holdings Ltd.’s contract to operate two ports along its strategic canal, according to people familiar with the matter.

The move could derail potential investments worth billions of dollars, the people said, asking not to be identified discussing private matters. Beijing has also asked shipping companies to consider rerouting cargo through other ports if it doesn’t result in significant extra costs, they added.