Hong Kong’s government has condemned a ruling by Panama’s highest court that cancels a concession allowing CK Hutchison to operate ports at both ends of the Panama Canal, calling the decision unreasonable and harmful to legitimate business interests.
The ruling, handed down late Thursday, declared the concession unconstitutional following an audit by Panama’s comptroller that alleged irregularities in a 25-year extension approved in 2021.
Hong Kong Slams Court Decision
In a statement issued Friday, Hong Kong officials said they “strongly disapprove of and firmly reject” the court’s decision. The government warned against the use of coercive or repressive measures in international economic relations, arguing that such actions seriously undermine the rights and interests of Hong Kong enterprises operating abroad.
The statement reflected growing concern in the city over political interference affecting overseas investments by its major companies.
US Influence Looms Large
The court’s ruling aligns with long-standing US efforts to limit China’s influence over the strategically vital Panama Canal. Blocking Beijing’s perceived reach into canal operations was a priority for the Trump administration, and Panama was the first overseas destination visited by Marco Rubio after becoming US Secretary of State.
Although Panama’s government and canal authority have consistently said China has no role in canal operations, US officials have treated the port concessions as a national security concern. President Donald Trump previously suggested that Panama should return control of the canal to the United States.
The court’s brief announcement did not clarify what would happen next to the ports.
Company Pushback and Political Crosswinds
CK Hutchison’s subsidiary, Panama Ports Company, said it had not yet received formal notice of the ruling and insisted the concession was awarded through an open and transparent international bidding process. The company argued the decision lacks legal foundation and threatens not only its contract but also the livelihoods of thousands of Panamanian families who rely on port activity. It also warned of damage to legal certainty and the rule of law in the country.
The company said it is reserving its right to pursue legal action in Panama or elsewhere.
The dispute adds another layer of complexity to CK Hutchison’s stalled plan to sell its majority stake in the Panamanian ports and other global assets to a consortium that included BlackRock. That deal reportedly ran into opposition from Beijing, prompting the company to consider bringing in a Chinese investor — a move widely seen as an attempt to ease political tensions.
The situation highlights the increasingly difficult balancing act faced by Hong Kong’s business leaders as they navigate Beijing’s expectations of political loyalty while operating in an environment shaped by intensifying US-China rivalry.
