A drone view shows containers docked at Panama Ports Company (PPC) after Panama’s Supreme Court annulled key port contracts held by the Hong Kong?based CK Hutchison–owned firm, leaving the future of some Panama Canal operations uncertain, in Panama City, Panama, February 4, 2026. REUTERS/Enea Lebrun
(Bloomberg) — Hong Kong has protested against Panama’s court ruling which struck down the contract granted to Li Ka-shing’s CK Hutchison Holdings Ltd. to operate two ports near the country’s strategic canal.
Commerce and Economic Development Secretary Algernon Yau lodged the protest during a meeting with Panama’s consul general José Ramón de Jesús Varela Fábrega on Friday, saying that the ruling would “seriously undermine international trade rules.”
Last month, Panama’s top court decision voided CK Hutchison’s contract, handing a win to US President Donald Trump’s campaign to curb Chinese influence over strategic infrastructure in the Americas.
“We strongly disagree with and oppose the judgment regarding the unconstitutionality of the two contracts for the continued operation of the two ports between the Panama government and CK Hutchison,” said a Facebook post from Hong Kong’s Commerce and Economic Development Bureau, citing Yau. The post also referenced the meeting between Yau and the consul general.
Yau said CK Hutchison has made substantial investments and created significant employment opportunities over the years for Panama, and urged the Panamanian government to respect the spirit of contract, and to provide a fair and just business environment for companies to operate.
China — the largest user of the Panama Canal after the US — cautioned last week that Panama would pay a “heavy price” for yielding to what it termed American hegemony.
China is asking state firms to halt talks over new projects in Panama as part of Beijing’s broader retaliation after the Central American country’s decision, Bloomberg News reported on Friday, citing people familiar with the matter.
The Panama court’s decision risks fueling tensions between Washington and Beijing as the two sides seek to maintain a trade truce ahead of Trump’s scheduled visit to China in April.
Earlier, a buyer group that includes BlackRock Inc. was considering walking away from the deal as state-owned China Cosco Shipping Corp. reportedly demanded a majority stake, according to the Financial Times. Bloomberg reported that the timing of the transaction remains uncertain due to unresolved issues, including Cosco’s role and securing approval from multiple national regulators.
© 2026 Bloomberg L.P.
This article contains reporting from Bloomberg, published under license.
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China is asking state firms to halt talks over new projects in Panama, as part of Beijing’s broader retaliation after the Central American country voided CK Hutchison Holdings Ltd.’s contract to operate two ports along its strategic canal, according to people familiar with the matter.
Hong Kong's CK Hutchison said on Wednesday its Panama Ports Company unit has started international arbitration proceedings against Panama after the country's top court annulled its licenses to operate two Panama Canal ports, in a case that could take years to resolve.
BEIJING, Feb 3 (Reuters) – China warned Panama on Tuesday there would be “heavy prices” to pay after a court ruling there annulled Hong Kong-based CK Hutchison’s contract to operate two ports at the Panama Canal....
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