Panama top court voids CK Hutchison ports contract in boost for Trump
View of the Port of Balboa, managed by CK Hutchison Holdings, based in Hong Kong, located at the entrance to the Panama Canal in Panama City, on March 12, 2025.
Martin Bernetti | Afp | Getty Images
Panama’s highest court has ruled against CK Hutchison, a Hong Kong-based company, declaring that a concession held by its subsidiary to operate ports at both ends of the Panama Canal is unconstitutional.
The decision is seen as a win for the U.S. administration’s security interests in the Western Hemisphere, aiming to counter China’s influence in the region.
In a brief statement released late Thursday, Panama’s Supreme Court stated that the terms under which Panama Ports Company (PPC), a CK Hutchison subsidiary, operates the ports of Balboa and Cristóbal were unconstitutional.
The court did not provide further details on the next steps following its decision.
This ruling also raises concerns about the future ownership of Panama Canal operations, including CK Hutchison’s proposed $23 billion sale of 43 ports worldwide to a consortium led by BlackRock and Mediterranean Shipping Company (MSC).
BlackRock declined to comment on the ruling, while CK Hutchison and MSC have not responded to requests for comments.
The court’s decision comes a year after U.S. President Donald Trump’s threat to take control of the Panama Canal, citing its importance and alleging Chinese operation.
The Trump administration has prioritized blocking China’s influence over the Panama Canal.
“The Monroe Doctrine is significant, but we have surpassed it by far. They now refer to it as the Donroe Doctrine,” Trump mentioned recently, following a U.S. military operation targeting Venezuela’s president.
“Under our new national security strategy, American dominance in the Western Hemisphere will remain unchallenged,” Trump asserted.
China vows to take necessary actions
PPC, which has managed the ports of Balboa and Cristóbal since the 1990s, criticized the court’s ruling, stating it contradicts the legal framework.
PPC expressed concerns about the impact on Panamanian families dependent on port activities and the rule of law in the country.
Following the ruling, CK Hutchison’s shares fell by 4.6%, coinciding with a 2% drop in Hong Kong’s Hang Seng index.
Aerial view of the Panama Canal at sunset, March 2025.
Alex Visbal | Moment | Getty Images
China swiftly responded to Panama’s court ruling, with a Foreign Ministry spokesperson stating the decision goes against Panama’s franchise approval laws. The companies involved will explore all legal options.
Beijing pledged to protect the rights and interests of Chinese companies through necessary measures.
— Contribution by CNBC’s Anniek Bao.
