Hong Kong’s government has pushed back strongly against a decision by Panama’s top court to void a long-standing concession that allowed CK Hutchison to operate ports at both ends of the Panama Canal, calling the ruling unjustified and harmful to legitimate business interests.
The Supreme Court ruling, delivered late Thursday, declared the concession unconstitutional following an audit by Panama’s comptroller that flagged alleged irregularities in a 25-year extension granted in 2021.
Hong Kong pushes back against Panama ruling
In a statement released Friday, Hong Kong’s government said it “strongly disapproves of and firmly rejects” the court’s decision. It warned against what it described as the use of coercive or unreasonable measures by foreign governments that undermine international trade norms and damage Hong Kong companies.
The ruling affects Panama Ports Company, a CK Hutchison subsidiary that has operated the strategically important ports for decades. The court did not specify what would happen next, leaving the future of the port operations uncertain.
US pressure and security concerns loom large
The decision comes amid growing US scrutiny of any perceived Chinese influence over the Panama Canal. Blocking such influence was a stated priority of the Trump administration, and Panama was the first overseas destination visited by Marco Rubio after taking office as US Secretary of State.
Although Panamanian authorities and the canal’s management have repeatedly said China has no role in canal operations, US officials have framed the port concessions as a national security concern. President Donald Trump previously went as far as suggesting Panama should hand control of the canal back to the United States.
Company defends concession and eyes legal action
Panama Ports Company said it had not yet been formally notified of the ruling but insisted its concession was awarded through a transparent international bidding process. The company said the decision lacked legal basis and threatened not only its contract but also the livelihoods of thousands of Panamanian families who depend on port activity.
It added that it was reserving all legal rights to challenge the ruling in Panama or other jurisdictions.
The controversy also revives attention on a stalled deal announced last year, in which CK Hutchison agreed to sell a majority stake in its Panamanian ports and other assets worldwide to an international consortium including BlackRock. That sale appeared to hit obstacles after objections from Beijing. The company later said it was considering bringing in a Chinese investor, though no further updates have been given.
The episode underscores the increasingly delicate position Hong Kong conglomerates face as they try to balance global commercial interests with mounting political pressures from both Washington and Beijing.
