Portuguese cargo ship MSC Maxine photographed at Balboa Port at the entrance to the Panama Canal in Panama City on April 23, 2025. The Port of Balboa is managed by Hong Kong-based CK Hutchison Holdings.
Martin Burnetti | Martin Burnetti AFP | Getty Images
Panama’s Supreme Court rules against a Hong Kong-based company CK HutchisonIt argued that the interests held by the company’s subsidiaries in operating ports at both ends of the Panama Canal violate the constitution.
The outcome is widely seen as a victory for the Trump administration’s security ambitions in the Western Hemisphere, as the United States seeks to counter China’s strategic influence in the region.
In a brief statement released late Thursday, Panama’s Supreme Court said the conditions under which Panama Ports Company (PPC), a subsidiary of CK Hutchison, operated the ports of Balboa on the Pacific coast and Cristobal on the Atlantic coast violated the country’s constitution and were no longer valid.
The court said it had reached its decision after “extensive deliberations” but did not provide details on next steps.
Questions have also been raised about the future ownership of some of the Panama Canal operations, including CK Hutchison’s proposed $23 billion sale of 43 ports around the world to a consortium led by BlackRock and Mediterranean Shipping Corporation (MSC).
BlackRock declined to comment on the ruling. CK Hutchison and MSC did not respond to requests for comment.
The decision comes nearly a year after US President Donald Trump threatened to seize control of the Panama Canal, claiming the vital waterway was “critical to our country” and “China runs it.”
The Trump administration has made blocking Chinese influence over the Panama Canal one of its top priorities.
“The Monroe Doctrine is a big problem, but we’ve replaced it pretty significantly. They now call it the Donroe Doctrine,” Trump said earlier this month, shortly after the U.S. military conducted an operation to capture Venezuelan President Nicolas Maduro on Jan. 3.
“Under our new National Security Strategy, America’s primacy in the Western Hemisphere will never be questioned again,” Trump said.
China promises to take necessary measures
PPC, which has held the operating contract for the ports of Balboa and Cristobal since the 1990s, said on Friday that the decision was inconsistent with the relevant legal framework.
“The new judgment, based on the available information, lacks legal basis and jeopardizes not only PPC and its contracts, but also the rule of law and legal certainty in this country, as well as the well-being and stability of the thousands of Panamanian families who directly and indirectly depend on port activities,” PPC said in a statement.
On Friday, CK Hutchison shares closed 4.6% lower as Hong Kong’s Hang Seng Index fell more than 2% during trading hours.
Aerial view of the Panama Canal at sunset, March 2025.
Alex Visbal | Moments | Getty Images
China also reacted quickly to the Panama Supreme Court’s ruling. A Chinese Foreign Ministry spokesperson said on Friday that the decision was “contrary to the law governing Panama’s recognition of the relevant franchises, and both companies reserve all rights, including legal proceedings.”
The spokesperson added that China will take all necessary measures to protect the legitimate rights and interests of Chinese companies.
—CNBC’s Anniek Bao contributed to this report.
