Panama’s Supreme Court ruled last week that contracts granting CK Hutchison Holdings, through its subsidiary Panama Ports Company, the right to operate two Panamanian ports were unconstitutional and therefore void. The court determined that the agreements conferred exclusive privileges and tax exemptions in violation of Panama’s constitution.
On February 3, Chinese authorities warned that Panama would pay a “heavy price” for the ruling, with China’s State Council Hong Kong and Macao Affairs Office denouncing the decision as “absurd.”
Panamanian President José Raúl Mulino responded on February 5, stating that Panama is a sovereign nation and would not accept threats from any country.
The timeline for implementing the court’s ruling remains unclear. Mulino said port operations would continue in coordination with Panama Ports Company until the decision takes effect. Once the concession is formally terminated, a local subsidiary of Denmark’s A.P. Moller–Maersk will assume interim management of the ports until a new concession is tendered and awarded.
The Supreme Court’s decision has been widely interpreted as a political victory for U.S. President Donald Trump, who has sought to limit Chinese influence over the strategically vital Panama Canal.
Source: Epoch Times, February 6, 2026
https://www.epochtimes.com/gb/26/2/5/n14692117.htm