China on Friday said it would be taking “necessary measures” following a ruling by Panama’s Supreme Court, that Chinese control of Panama Canal ports was unconstitutional.
Late on Thursday, Panama’s top court annulled the concession held by Hong Kong-based CK Hutchison Holdings, to operate ports on either side of the canal.
The ruling comes in the wake of an audit conducted by Panama’s comptroller, which raised concerns over the 25-year extension of the concession granted in 2021.
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What China’s Foreign Ministry has said
“The Chinese side will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” Foreign Ministry spokesman Guo Jiakun told a regular briefing.
No mention was made of the potential next steps Beijing would be taking.
The Panama Ports Company (PPC), a CK Hutchison subsidiary, insisted its concession was the result of transparent international bidding.
“The new ruling … lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend and indirectly on port activity but also the rule of law and legal certainty in the country,” the company said a statement.
PPC has held contracts since the 1990s to operate container terminals at the canal’s Pacific and Atlantic entrances, separate from the waterway’s operations.
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Control of the Panama Canal
The annulment is likely to be viewed positively by the Trump administration, considering that blocking China’s influence over the Panama Canal has been on one of its priorities.
Panama was US Secretary of State Marco Rubio’s first overseas visit as Washington’s top diplomat with the matter being viewed by the White House as a national security concern.
In early 2025, Trump called for the US to reclaim control of the important waterway, citing China’s growing influence in the region.
Panama at the time said that sovereignty of the Panama Canal was not up for discussion and that it was operated by Panama and would stay that way.
Edited by: Saim Dušan Inayatullah
