Hong Kong’s government has pushed back strongly against a ruling by Panama’s Supreme Court that voided a long-standing concession allowing CK Hutchison to operate ports at both ends of the Panama Canal, calling the move unacceptable and harmful to business confidence.
The decision, 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 Condemns the Ruling
In a statement released Friday, the Hong Kong government said it “strongly disapproves of and firmly rejects” the court’s decision. It warned against the use of coercive or unreasonable tactics in international trade, arguing that such actions seriously damage the legitimate interests of Hong Kong companies operating abroad.
Officials framed the ruling as part of a broader pattern of pressure that undermines fair and predictable economic relations.
US Influence and Security Concerns
The court’s move comes amid growing geopolitical tension over the Panama Canal, a vital global shipping route. Blocking China’s influence over the canal became a clear priority of the Trump administration, with Panama serving as the first overseas stop for US Secretary of State Marco Rubio.
While Panama’s government and canal authority have repeatedly insisted that China plays no role in canal operations, Rubio made clear that Washington views the port operations as a US national security issue. President Donald Trump previously went as far as suggesting the canal should be returned to US control.
The court’s brief statement did not explain what will happen next to the ports affected by the ruling.
Company Response and Beijing Tensions
CK Hutchison’s subsidiary, Panama Ports Company, said it had not yet been formally notified of the decision but defended the concession as the product of a transparent international bidding process. The company said the ruling lacks legal basis and threatens not only its contract, but also the livelihoods of thousands of Panamanian families who depend on port activity, as well as legal certainty in the country.
The company said it is reserving the right to pursue legal action in Panama or elsewhere.
The ruling also revives scrutiny of a deal announced last year in which CK Hutchison agreed to sell its majority stake in the Panamanian ports and other global assets to a consortium that included BlackRock. That sale appeared to stall after objections from Beijing, prompting the company to consider bringing in a Chinese investor — a move widely seen as an attempt to ease political tensions.
The episode highlights the increasingly difficult position Hong Kong’s business leaders face as they try to balance global commercial interests with Beijing’s expectations of political loyalty, particularly as relations between China and the United States remain strained.
