The Supreme Court of Panama is set to soon rule on whether CK Hutchison, a Hong Kong-based conglomerate owned by Li Ka-shing, can continue operating ports at both ends of the Panama Canal. The judgment holds significant geopolitical implications.
The case originated from accusations by the Panamanian Comptroller and private lawyers alleging that CK Hutchison violated the constitution, harmed the interests of Panama and its taxpayers, and pointed out that its operations led to government losses of up to $1.3 billion in revenue.
The court may impose fines but allow CK Hutchison to continue operating, or it could immediately revoke the authorization granted to the company. If revoked, the Panamanian government would need to quickly arrange temporary management to prevent disruption in port operations.
In the late 1990s, CK Hutchison outbid other companies, including the U.S.-based Bechtel, to secure a 25-year concession to operate the two ports at the Panama Canal, with the contract extended in 2021 until 2046.
However, this deal has faced criticism within Panama for years, especially sparking multiple lawsuits following the contract extension.
Panamanian Finance Minister Felipe Chapman, in an interview with The Wall Street Journal, stated, “For the past few decades, the relationship between CK Hutchison and Panamanian society has been very tense and difficult.”
Government officials, including Chapman, have indicated that if the Supreme Court rules to revoke the permit, the government is prepared to ensure takeover and sustain port operations. They also plan to redesign bidding conditions, splitting and selling operational rights of the two ports separately to maximize returns.
President of Panama José Raúl Mulino mentioned that he will await and comply with the court’s decision, but personally believes that maintaining the status quo is not feasible.
After the Comptroller filed a lawsuit with the Supreme Court in July 2025, the president said, “At the moment, I don’t think the Panama Ports contract will remain valid, regardless of modifications made.”
This case is also seen as part of the competition for influence in Latin America between the United States and China. The Trump administration expressed the desire to “reclaim” control of the canal, while Beijing opposes the sale of the port to a U.S.-led group. Meanwhile, there is general wariness in Panamanian politics and society regarding the relationship between CK Hutchison and Beijing.
An insider close to CK Hutchison told Huari that they believe this lawsuit is politically motivated, and if they lose, they will resort to international arbitration. The Chinese Ministry of Foreign Affairs has cautioned that if CK Hutchison loses the port operating rights, retaliatory actions may be taken.
Huari reported that following the U.S. military raid on Venezuela, Beijing is establishing a Latin America Special Task Force to study how to safeguard its interests in the region.
Under U.S. pressure, in 2025, CK Hutchison agreed to sell over 40 ports worldwide to American investment firm BlackRock and Mediterranean Shipping Company for $23 billion, including the two ports in Panama.
But Beijing opposes this deal, requesting that Chinese state-owned shipping company Cosco be included with majority ownership and veto power, which directly stalled the transaction.
Reports suggest that the Panamanian government was shocked by the latest developments in negotiations for this deal, as permits issued by Panama do not allow participation of foreign state-owned enterprises. Officials stated that Chinese government officials and CK Hutchison executives did not engage with the Panamanian government to provide information or seek approval.
A former government official mentioned that Panama has long been dissatisfied with the terms of CK Hutchison’s deal, and President Trump’s complaints only exacerbated this long-standing dispute.