Hong Kong’s government has sharply criticized a decision by Panama’s highest court to cancel a long-standing concession that allowed a subsidiary of CK Hutchison Holdings to operate ports at both ends of the Panama Canal, calling the move unjustified and damaging to business confidence.
The ruling, issued late Thursday, declared the concession unconstitutional following an audit by Panama’s comptroller that cited irregularities in a 25-year extension approved in 2021.
Hong Kong Pushes Back
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 in international economic relations, arguing that such actions harm the legitimate interests of Hong Kong companies operating overseas.
Officials framed the ruling as a threat not just to a single company, but to broader confidence in cross-border trade and investment involving Hong Kong firms.
US Pressure and Strategic Concerns
The court’s decision comes amid heightened geopolitical tensions surrounding the Panama Canal, a critical global shipping route. The United States has made limiting China’s influence over the canal a key regional priority, a stance underscored when Panama became the first overseas stop for US Secretary of State Marco Rubio.
While Panama’s government and canal authority have repeatedly said China has 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 return to US control.
The court offered no immediate guidance on what will happen next with the ports.
Company Caught in the Middle
CK Hutchison’s subsidiary, 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 the decision lacks legal foundation and risks undermining the livelihoods of thousands of Panamanians who depend on port operations, as well as the country’s legal certainty.
The firm said it is reserving the right to pursue legal remedies in Panama or elsewhere.
The dispute also revives attention to a stalled 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 transaction appeared to slow amid objections from Beijing, prompting the company to consider bringing in a Chinese investor — a move widely seen as an attempt to ease political pressure.
The episode highlights the increasingly delicate position Hong Kong’s business leaders face as they try to balance commercial interests with rising expectations of political alignment, particularly as relations between China and the United States remain strained.
