Panama's top court rules Chinese-linked firm's canal port concessions unconstitutional
The ruling throws the future of two strategic terminals into doubt and sharpens US-China rivalry over the global shipping artery.
Panama’s Supreme Court has ruled that license terms allowing a Hong Kong-based company to operate two major ports at either end of the Panama Canal violate the country’s constitution, a decision that could reshape control over one of the world’s most strategic waterways.
In a brief statement on Thursday, the court said the concession granted to CK Hutchison for the ports of Balboa on the Pacific coast and Cristobal on the Atlantic side was unconstitutional, according to local daily La Prensa.
The ruling casts uncertainty over the future of the long-standing operating arrangements and may force Panama’s government to revisit port concessions that have helped anchor foreign investment around the canal for decades.
Scrutiny of Chinese-linked infrastructure
The decision comes amid intensifying geopolitical scrutiny of Chinese-linked infrastructure in the region.
About a year ago, US President Donald Trump publicly warned that China’s commercial presence near the canal posed a potential national security threat to the United States.
“China is operating the Panama Canal, and we didn’t give it to China,” Trump said during his inaugural address, referring to Chinese companies’ role in surrounding logistics and port operations.
While CK Hutchison is based in Hong Kong and not state-owned, its presence has become a focal point in broader US-China competition for influence across Latin America and the Caribbean.
Analysts say the court’s decision places Panama squarely in the middle of that rivalry, with any changes to port control likely to carry economic, legal and diplomatic consequences.
The Panama Canal handles roughly 5 percent of global maritime trade, making access to and influence over its surrounding infrastructure a strategic prize for major powers.