Hong Kong’s government has hit back after Panama’s Supreme Court struck down a concession that allowed CK Hutchison to operate ports at both ends of the Panama Canal, a decision that has quickly taken on geopolitical weight.
The ruling came after an audit by Panama’s comptroller raised concerns over how a 25-year extension of the concession was granted in 2021, ultimately leading the court to declare the deal unconstitutional.
Hong Kong Rejects the Court Decision
In a statement released Friday, Hong Kong’s government said it “strongly disapproves of and firmly rejects” the ruling. It warned against what it described as coercive or unreasonable actions by foreign governments that could damage the legitimate business interests of Hong Kong companies operating overseas.
The government framed the decision as harmful not only to CK Hutchison, but also to the broader principle of fair and predictable international trade.
US Influence Looms Large
The court’s decision aligns with long-standing US efforts to limit China’s perceived influence over the strategically vital Panama Canal. The Trump administration made the issue a priority, and Panama was the first overseas destination for Marco Rubio after he became US Secretary of State.
Although Panama’s government and canal authority have repeatedly said China plays no role in canal operations, US officials have treated the port concessions as a national security concern. President Donald Trump previously went as far as suggesting the canal should be returned to US control.
The court’s ruling offered no clarity on what will happen next to the ports themselves.
CK Hutchison Caught Between Powers
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 an open and 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 operations, as well as legal certainty in the country.
The company said it is reserving its right to pursue legal action in Panama or elsewhere.
The dispute also revives questions around a deal announced last year in which CK Hutchison agreed to sell its majority stake in the Panamanian ports and other assets to an international consortium that included BlackRock. That sale appeared to stall amid 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 underscores the increasingly difficult balancing act facing Hong Kong’s business leaders as they navigate Beijing’s expectations of loyalty while operating in a world shaped by rising US-China rivalry.
