Panama’s Supreme Court has annulled a concession that allowed Hong Kong’s CK Hutchison to operate ports at both ends of the Panama Canal, following an audit that found irregularities in a 25-year extension granted in 2021. The ruling has sparked strong reactions from Hong Kong and drawn attention to the geopolitical stakes surrounding the strategic waterway.
Hong Kong Voices Strong Rejection
On Friday, Hong Kong’s government issued a statement saying it “firmly rejects” the ruling and condemns any foreign government using coercive or unreasonable measures in international economic relations. Officials warned that the decision threatens the business interests of Hong Kong companies and undermines confidence in fair and transparent international trade.
Geopolitics and Security Concerns
The court’s decision comes amid long-standing US concerns over Chinese influence in the Panama Canal. While Panama’s authorities insist China has no role in canal operations, US officials—including Secretary of State Marco Rubio—have framed the port operations as a national security issue. The Trump administration previously made limiting Chinese influence in the region a priority, with Trump himself suggesting Panama should return control of the canal to the US.
The ruling did not clarify what will happen to the ports next, leaving the future of operations uncertain.
CK Hutchison Faces Legal and Political Challenges
Panama Ports Company, CK Hutchison’s subsidiary that operates the ports, said it has not yet been formally notified but defended the concession as the result of transparent international bidding. The company warned that the decision jeopardizes not only its contract but also the livelihoods of thousands of Panamanians dependent on port activity. It said it reserves the right to pursue legal remedies in Panama or elsewhere.
Complicating matters is a stalled sale announced last year, in which CK Hutchison planned to sell its majority stake in the Panamanian ports and other global assets to an international consortium including BlackRock. Objections from Beijing reportedly slowed the deal, prompting the company to consider bringing in a Chinese investor—a move interpreted by some as an attempt to appease Beijing.
The situation underscores the delicate balancing act Hong Kong business leaders face as they navigate global commercial interests while managing Beijing’s expectations, especially amid rising China-US tensions.
