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China Vows to Protect HK Firm After Panama Court Ruling on Strategic Ports

By The South Asia Times

BEIJING - China on Friday pledged to safeguard the rights of a Hong Kong-based company after Panama’s Supreme Court declared key port contracts held by CK Hutchison unconstitutional.

“China will take all necessary actions to protect the rights of Chinese companies,” Foreign Ministry spokesman Guo Jiakun told reporters in Beijing, adding that CK Hutchison reserves all legal rights to challenge the ruling. Guo said the company had already issued a statement noting that the court’s decision was inconsistent with Panamanian law.

The ruling, announced on Thursday, found that the concession contracts allowing CK Hutchison to operate the ports of Balboa on the Pacific coast and Cristóbal on the Atlantic side violated Panama’s constitution. Analysts say the decision could trigger a major reassessment of port concessions and alter the balance of influence over the Panama Canal, one of the world’s most strategic maritime corridors.

Observers note that the ruling places Panama at the center of rising U.S.-China tensions in the Western Hemisphere. The decision comes about a year after then-U.S. President Donald Trump publicly warned that Chinese-linked infrastructure near the canal could pose a security threat, highlighting the growing geopolitical stakes over critical infrastructure in the region.

The Hong Kong government also expressed strong opposition to the ruling, warning that such actions undermine lawful business operations, weaken investor confidence, and could harm bilateral relations and long-term economic development.