January 30, 2026, 11:27 amJanuary 30, 2026, 11:27 am
Panama’s Constitutional Court has canceled the contracts of a Hong Kong company to operate two ports in the Panama Canal, which is important for shipping. The verdict is in line with US President Donald Trump. Criticism, however, came from Beijing.
Port of Balboa, Panama. Image: AP
The contracts for the ports in Balboa and Cristóbal are unconstitutional, the Constitutional Court announced on Friday. The operator is a subsidiary of the CK Hutchison group. The Hong Kong company had had the ports since 1997.
The Hong Kong company’s involvement caused a dispute with the US government last year because President Donald Trump claimed that China had control over the important maritime trade route in Latin America. Trump threatened to bring the canal under US control.
Port of Cristóbal in Colon, Panama.Image: EPA EFE
Future unclear
The affected subsidiary, Panama Ports Company, said the court’s decision did not comply with the relevant laws governing the contract. China’s foreign ministry spokesman Guo Jiakun said in Beijing that the People’s Republic would take all necessary measures to protect the rights and interests of Chinese companies.
Washington should be pleased with the Supreme Court’s decision. CK Hutchison cannot appeal this. The Constitutional Court’s announcement did not say exactly how the operation of the ports should continue. This is likely to delay a deal with which the group wants to sell its 43 port investments in a total of 23 countries, including the ports in the Panama Canal.
What the deal provides
According to reports, the buyers are the US financial firm Blackrock together with Terminal Investment Ltd. the Italian billionaire and MSC founder Gianluigi Aponte. However, Beijing intervened in the deal and began a review.
As recently as December, the Commerce Department said authorities were reviewing the sale in accordance with the law. China wanted to ensure that the state-owned shipping company Cosco received a major share of the shares to be sold.
The Panama Canal was built by the USA at the beginning of the 20th century. Washington gave up complete sovereignty over the Canal Zone to Panama at the end of 1999. (sda/awp/dpa)