Hong Kong’s government has pushed back strongly against a decision by Panama’s highest court to cancel a long-standing concession that allowed a subsidiary of CK Hutchison to operate key ports at both ends of the Panama Canal.
In a statement issued on Friday, the government said it “strongly disapproves of and firmly rejects” the ruling, warning against what it described as the use of coercive or unreasonable measures that damage the legitimate interests of Hong Kong businesses operating overseas.
A ruling shaped by audits and geopolitics
Panama’s Supreme Court ruled late Thursday that the concession held by Panama Ports Company, a CK Hutchison subsidiary, was unconstitutional. The decision followed an audit by Panama’s comptroller, which cited irregularities in a 25-year extension of the concession granted in 2021.
The ruling aligns with long-standing US concerns about China’s potential influence over the strategic waterway. Blocking such influence became a priority during the Trump administration, which openly questioned Chinese-linked operations around the canal. Marco Rubio made Panama his first overseas visit after becoming US secretary of state, underscoring Washington’s focus on the issue.
While Panama’s government and the canal authority have repeatedly said China has no role in canal operations, US officials have framed the port concessions as a national security concern. Former president Donald Trump even suggested that Panama should return control of the canal to the United States.
Uncertainty for ports and workers
The court’s decision offered no clarity on what will happen next to the ports themselves. Panama Ports Company said it had not yet been formally notified of the ruling and maintained that its concession was awarded through an open and transparent international bidding process.
In a statement, the company said the decision lacks legal basis and threatens not only its contract, but also the livelihoods of thousands of Panamanian families who depend directly or indirectly on port operations. It added that the ruling undermines legal certainty in the country and said it reserves the right to pursue legal action in Panama or elsewhere.
A stalled sale and Beijing’s shadow
The controversy comes amid broader uncertainty surrounding CK Hutchison’s global port business. Last year, the company announced plans to sell its majority stake in the Panamanian ports, along with others worldwide, to an international consortium that included BlackRock. That deal appeared to stall after objections from Beijing.
In July, CK Hutchison said it was considering bringing in a Chinese investor as a major partner in the consortium, a move widely seen as an attempt to ease political pressure. Since then, the company has provided no further updates.
The episode highlights the increasingly delicate position faced by Hong Kong’s business elite, caught between international commercial interests and Beijing’s expectations of political loyalty at a time of strained US-China relations.
