CK Hutchison has reported that the Panamanian government has taken “administrative and operational control” of its two ports located at either end of the Panama Canal, following a ruling by the country’s Supreme Court. This decision involves a direct takeover of the terminals at Balboa and Cristobal, a move described by the Hong Kong conglomerate as “unlawful” and indicative of a broader campaign against its subsidiary, Panama Ports.
According to an official decree, the Panama Maritime Authority has been granted the authority to occupy these ports, citing “urgent social interest” as the rationale behind this significant intervention. The decree also enables the government agency to take control of essential port assets, including property, computer systems, and cranes.
This takeover is the latest chapter in a complex saga for CK Hutchison, which has found itself at the center of a geopolitical conflict involving China, the United States, and Panama. The tensions escalated after former US President Donald Trump, upon his return to office in late 2024, began alleging that the Panama Canal was effectively under Chinese control, asserting the need to “take it back” with military force if necessary to reassert American dominance in the region.
In a surprising twist, Panama’s Supreme Court deemedCK Hutchison’s operating concession for the two ports—as recently renewed in 2021 for an additional 25 years—unconstitutional. This ruling has drawn sharp criticism from the Chinese government. The Hong Kong and Macao Affairs Office characterized the decision as “absurd” and warned of potential “heavy prices” for Panama both politically and economically.
In response to these developments, Panama’s President Jose Raul Mulino firmly rejected China’s threats, emphasizing that his country upholds the rule of law and respects the independence of its judiciary. This situation underscores Panama’s commitment to maintain its sovereignty and legal integrity amidst international pressures.
As this situation evolves, it reflects not only the intricate dynamics of international relations but also the resilience of Panama in navigating these challenges. There remains a glimmer of hope that diplomatic dialogue can provide a path forward, allowing for resolution that respects both national sovereignty and international partnerships.