China ramps up threats over Panama Canal CK Hutchison ruling
A cargo ship passes through Panama City through the Cocoli locks of the Panama Canal on February 21, 2025.
Martin Bernetti | Afp | Getty Images
The Chinese government condemned the decision of Panama’s supreme court and warned that the Central American country would “inevitably pay a heavy price” if it did not change course.
The rebuke came shortly after Panama’s Supreme Court ruled to invalidate Hong Kong-based CK Hutchison’s license to operate ports at both ends of the Panama Canal.
The decision was seen as a major victory for the Trump administration’s security goals in the Western Hemisphere, given that the White House has made blocking China’s influence in the critically important waterway one of its top priorities.
In a comment published on Tuesday WeChat accountThe State Council’s Hong Kong and Macau Affairs Office said the “logically flawed” and “completely absurd” decision was opposed by the Chinese government and the government of the Hong Kong Special Administrative Region.
“Panama authorities should take notice of the situation and mend their ways,” the Hong Kong and Macau Affairs Office said, according to Google’s translation.
“If they insist on their own path, if they persist, it is inevitable that they will pay a heavy price, politically and economically!”
One short description On January 29, Panama’s supreme court said that the terms under which Panama Ports Co. (PPC, a subsidiary of CK Hutchison) operates the Port of Balboa on the Pacific coast and Cristóbal on the Atlantic side of the Panama Canal violate the constitution.
The decision comes nearly a year after US President Donald Trump threatened to seize control of the Panama Canal, saying the waterway was “vital to our country” and claiming it was “operated by China”.
‘Major damages’
The Hong Kong and Macau Affairs Office’s comments reflect the rising tone since China’s initial reaction to the decision.
A spokesman for China’s Ministry of Foreign Affairs said on Friday that the decision “contradicts the laws governing Panama’s approval of relevant franchises, and the companies will reserve all their rights, including legal proceedings.”
Beijing said it would take all necessary measures to protect the legitimate rights and interests of Chinese companies.
PPC, which has held the operating contract for the ports of Balboa and Cristóbal since the 1990s, also said that the decision was inconsistent with the relevant legal framework.
Aerial view of the Bridge of the Americas at the Pacific entrance to the Panama Canal, located next to the Balboa port in Panama City on January 30, 2026.
Martin Bernetti | Afp | Getty Images
C.K. Hutchison said, said Wednesday He said he initiated international arbitration proceedings against Panama after Panama revoked its license to operate two Panama Canal ports.
In a statement, the company said PPC would seek “comprehensive compensation” according to the decision, without specifying the compensation sought.
Shares of CK Hutchison closed more than 2% on Wednesday. The stock is up over 23% so far this year.
