Hong Kong’s government has sharply criticised a ruling by Panama’s top court that voided a long-standing concession allowing CK Hutchison, a Hong Kong conglomerate, to operate 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 decision, warning against what it described as the use of coercive or unreasonable measures that damage the legitimate interests of Hong Kong companies operating overseas.
A ruling shaped by politics and audits
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 the country’s comptroller, which alleged irregularities in the 25-year extension of the concession approved in 2021.
While the court offered little explanation and gave no indication of what would happen next to the ports, the ruling aligns with long-standing US concerns about China’s perceived influence over the strategic waterway. Blocking that influence has been a priority for Washington, particularly during the Trump administration.
Panama was the first foreign destination visited by US Secretary of State Marco Rubio, who made clear that the operation of the ports was viewed by the US as a national security issue, despite repeated assurances from Panamanian authorities that China has no role in canal operations. President Donald Trump had previously gone as far as suggesting the canal should return to US control.
Company warns of legal and economic fallout
Panama Ports Company said it had not yet been formally notified of the ruling but defended its concession as the result of a transparent international bidding process. The company argued that 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 activity.
In its statement, the company warned that the ruling undermines legal certainty in the country and said it is reserving the right to pursue legal action in Panama or other jurisdictions, without providing further details.
A stalled sale and pressure from Beijing
The dispute comes against the backdrop of a stalled deal that appears to have unsettled Beijing. Last year, CK Hutchison announced plans to sell its majority stake in the Panamanian ports, along with other assets worldwide, to an international consortium that included BlackRock.
That transaction later appeared to hit obstacles amid objections from the Chinese government. In July, the company said it was considering bringing a Chinese investor into the consortium, a move widely seen as an attempt to ease political pressure. No further updates have been given since.
The episode highlights the increasingly delicate position of Hong Kong’s business leaders, who must balance commercial interests with Beijing’s expectations of national loyalty at a time when tensions between China and the United States remain high.
