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The Portuguese cargo ship MSC Maxine is photographed at the Port of Balboa at the entrance to the Panama Canal on April 23, 2025 in Panama City. The Port of Balboa is managed by Hong Kong-based CK Hutchison Holdings.
Martin Bernetti | AFP | Getty Images
Panama Supreme Court rules against Hong Kong ChangheIt said it was unconstitutional for one of the company’s subsidiaries to hold concessions for ports at both ends of the Panama Canal.
The outcome was widely seen as a victory for the Trump administration’s security ambitions in the Western Hemisphere, as the United States seeks to counter China’s strategic influence in the region.
in a short statement Panama’s Supreme Court issued a statement late Thursday saying that the terms under which CK Hutchison’s subsidiary Panama Ports Company (PPC) operates the port of Balboa on the Pacific coast and the port of Cristobal on the Atlantic Ocean violate the country’s constitution and are no longer valid.
The court said the decision was reached after “extensive deliberation” but did not provide further details on next steps.
About a year after the election of U.S. President Donald Trump threaten to seize control The head of the Panama Canal says the vital waterway is “vital to our country” and claims “it is operated by China.”
The Trump administration has made blocking China’s influence on the Panama Canal one of its top priorities.
“this Monroe Doctrine It was a big thing, but we’ve replaced it a lot, really a lot. They now call it the Don Doctrine,” Trump said earlier this month, shortly after U.S. troops launched a Jan. 3 operation to capture Venezuelan President Nicolás Maduro.
“Under our new National Security Strategy, America’s dominance in the Western Hemisphere will never again be questioned,” Trump said.
China promises to take necessary measures
PPC, which has held contracts to operate the ports of Balboa and Cristobal since the 1990s, said Friday it was aware of the court’s ruling and criticized the outcome.
According to Reuters, PPC said in a statement: “The new ruling based on available information lacks legal basis and jeopardizes not only PPC and its contracts, but also the well-being and stability of thousands of Panamanian families who directly and indirectly depend on port activities, as well as the rule of law and legal certainty in the country.”
CNBC has contacted PPC and CK Hutchison for response to the court ruling.
On Friday, CK Hutchison’s shares fell 4.8%, while Hong Kong’s Hang Seng Index fell nearly 2% on the day.
China was also quick to respond to the Panama Supreme Court ruling. Spokesperson of the Chinese Ministry of Foreign Affairs explain On Friday, the decision “violated Panamanian laws approving the relevant concessions and the company reserves all rights, including legal proceedings.”
The spokesperson also stated that China will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies.
—CNBC’s Anniek Bao contributed to this report.
