Hong Kong company’s concession to operate Panama Canal ports is ruled unconstitutional

Panama’s Supreme Court has ruled that the concession held by a subsidiary of Hong Kong’s CK Hutchison Holdings to operate ports at either end of the Panama Canal was unconstitutional, an outcome that advances a U.S. aim to block any influence by China over the strategic waterway. The court’s ruling late Thursday followed an audit by Panama’s comptroller, which alleged irregularities in the 25-year extension of the concession granted in 2021. The Trump administration made blocking China’s influence over the Panama Canal one of its priorities in the hemisphere. CK Hutchison’s subsidiary, Panama Ports Company, said the ruling jeopardised the contract and the country’s rule of law, and that it reserves all rights to proceed legally.