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On April 23, 2025, the Portuguese cargo vessel MSC Maxine was captured in a photograph docked at the Port of Balboa, located at the entrance to the Panama Canal in Panama City. The facility is operated by CK Hutchison Holdings, a company headquartered in Hong Kong.
In a significant legal development, Panama’s highest court has ruled against CK Hutchison Holdings. The ruling declared that the concession held by a subsidiary of the firm, which allows it to manage ports situated at both ends of the Panama Canal, is unconstitutional.
This decision is perceived as a triumph for the United States’ strategic goals in the Western Hemisphere, aligning with efforts by the Trump administration to diminish China’s influence in the region.
In a concise statement released late Thursday, Panama’s Supreme Court announced that the agreements under which Panama Ports Company (PPC), a subsidiary of CK Hutchison, operates the Port of Balboa on the Pacific side and Cristóbal on the Atlantic side, breach the nation’s constitution and are therefore invalid.
The court emphasized that the verdict was reached after “extensive deliberation,” though it did not provide further information regarding the forthcoming procedures.
The court said it came to its decision after “extensive deliberation” but did not provide further details on the next steps.
It also raises questions about the future ownership of some Panama Canal operations, including CK Hutchison’s proposed $23 billion sale of 43 ports across the globe to a consortium led by BlackRock and Mediterranean Shipping Company (MSC).
BlackRock declined to comment on the ruling. CK Hutchison and MSC did not immediately respond to a request for comment.
The decision comes roughly one year after U.S. President Donald Trump threatened to seize control of the Panama Canal, saying the critically important waterway was “vital to our country” and claiming, “it’s being operated by China.”
The Trump administration has made blocking China’s influence over the Panama Canal one of its top priorities.
“The Monroe Doctrine is a big deal but we have superseded it by a lot, by a real lot. They now call it the Donroe Doctrine,” Trump said earlier this month, shortly after U.S. troops conducted an operation to capture Venezuela’s president Nicolás Maduro on Jan. 3.
“Under our new national security strategy, American dominance in the Western Hemisphere will never be questioned again,” Trump said.
China pledges to take necessary measures
PPC, which has held the contract to operate the ports of Balboa and Cristóbal since the 1990s, said on Friday that it had been notified of the court’s decision and criticized the outcome.
“The new ruling, based on available information, 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 directly and indirectly on port activity but also the rule of law and legal certainty in the country,” PPC said in a statement, according to Reuters.
Shares of CK Hutchison closed 4.6% lower on Friday as Hong Kong’s Hang Seng index slipped over 2% for the session.
Aerial photograph of the Panama Canal at sunset, March 2025.
Alex Visbal | Moment | Getty Images
China also swiftly responded to the ruling from Panama’s top court. A spokesperson for China’s Ministry of Foreign Affairs said on Friday that the decision was “contrary to the laws governing Panama’s approval of the relevant franchises, and that the companies will reserve all rights, including legal proceedings.”
The spokesperson added that Beijing would take all necessary measures to safeguard the legitimate rights and interests of Chinese companies.
— CNBC’s Anniek Bao contributed to this report.
