Panama’s Supreme Court ruled Thursday that Hong Kong-based CK Hutchison Holdings cannot operate ports at either end of the Panama Canal. A government audit claimed the company shortchanged Panama $1.3 billion during its 25-year concession extension granted in 2021.
The court said concessions for Balboa port on the Pacific Coast and Cristóbal on the Atlantic violated Panama’s constitution. Danish shipping company Maersk will temporarily manage both ports until Panama opens new bidding. CK Hutchison has operated the facilities since 1997.
Panama brought the lawsuit at Trump administration urging. Secretary of State Marco Rubio made Panama his first overseas stop and called the Chinese port operations a national security threat. A senior U.S. official called the ruling “a big win for America and certainly for President Trump.”
Trump threatened repeatedly in 2025 to seize the canal, claiming Chinese control through the ports. The waterway carries five percent of global maritime trade.
CK Hutchison attempted to sell the ports last year to a BlackRock-led consortium. The Chinese government blocked the deal. China’s foreign ministry said Thursday it will “take all necessary measures to safeguard the legitimate rights and interests of Chinese companies.”
The company is owned by Li Ka-shing’s family. Li is Hong Kong’s richest man. BlackRock is a U.S. investment firm. Beijing blocked the sale to an American company, then lost the ports to a Panamanian court ruling pushed by Washington.
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