Ports dispute hurts investors’ confidence in Panama, Hong Kong leader warns

2026-02-10 - 10:58

Panama‘s court decision to void Hong Kong-based CK Hutchison’s ports contract has hurt investors’ confidence in the Central American country, the city’s Chief Executive John Lee has said. The Port of Balboa in Panama. Photo: Panama Maritime Authority. “Panama’s reversal of legitimate economic and trade relations has undermined its credibility,” Lee told reporters in Cantonese on Tuesday. “This will cause far-reaching damage to its business environment and economic development, and severely disrupt international trade rules.” The Hong Kong government opposes any foreign country using “coercion, pressure, or any other unreasonable political manoeuvres” in international trade, he also said at the press conference. Late last month, Panama’s top court annulled CK Hutchison’s contract, ruling that the laws allowing the Hong Kong conglomerate to operate two ports at either end of the Panama Canal were “unconstitutional.” Lee said on Tuesday that the Hong Kong government summoned Panama’s envoy to the city last week in protest, urging the country to respect the spirit of the contract and the legitimate interests of corporations. CK Hutchison had managed the ports of Cristobal on the canal’s Atlantic side and Balboa on the Pacific side since 1997. The concession was extended for 25 years in 2021. The Panamanian court ruling came after US President Donald Trump repeatedly threatened to seize the strategic waterway, claiming it was under China’s control. Hong Kong Chief Executive John Lee. File Photo: Kyle Lam/HKFP. The Panama Ports Company, a subsidiary of CK Hutchison that operated the two ports, said last week it had begun international arbitration against Panama. While the US welcomed the court ruling, China expressed outrage. The Hong Kong and Macao Affairs Office, Beijing’s top office on Hong Kong affairs, threatened to make Panama pay a “heavy price.” Explainer: CK Hutchison’s Panama ports deal, Beijing’s reaction and the impact on geopolitics Lee said on Tuesday that the Hong Kong government would fully support and cooperate with Beijing’s foreign policy after China said it would take all necessary steps to ensure the legitimate rights of Chinese corporations operating overseas. Panama’s government has tapped Danish company Maersk to temporarily take over the management of the two ports until a new concession is awarded. CK Hutchison announced in March its plan to sell the Panama Canal ports to a consortium led by US asset manager BlackRock. The status of that proposal is unclear following the court ruling.