China has called the court’s ruling against Hong Kong company CK Hutchison over the Panama Canal ports “unreasonable” and “shameful”.
Published February 4, 2026
Hong Kong company CK Hutchison has announced the start of international arbitration proceedings against Panama after the country’s Supreme Court, under pressure from the United States, invalidated a contract to operate two strategic Panama Canal ports.
Wednesday’s announcement came after the Chinese government’s Hong Kong and Macau Affairs Office (HKMAO) said Panama’s judgment against Panama Ports Company, a subsidiary of CK Hutchison, was “absurd” and “shameful and pathetic.”
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Hong Kong’s government said on Tuesday that the Panamanian court “ignored the facts, violated trust, and seriously injured the legitimate rights and interests of Chinese and Hong Kong companies.”
“China has sufficient means and means, sufficient strength and capabilities to safeguard a fair and just international economic and trade order,” the office said.
If Panama insists on enforcing the ruling, it will “certainly pay a heavy political and economic price,” the authorities warned.
Panama’s Supreme Court decided last week to invalidate the contract of a Hong Kong company to operate two ports on the canal, after US President Donald Trump threatened to seize control of the vital shipping route between the Pacific and Atlantic Oceans, arguing that the canal was effectively under Chinese control and therefore a security threat to Washington.
China’s statement did not name the United States, but said “a country…used bullying tactics to force others to submit to its will” and said Panama had “willingly succumbed” to hegemony.
John Moolener, chairman of the U.S. House Select Committee on China, called the Panama court’s decision “a victory for the United States.”
Panama’s government did not respond to requests for comment on China’s warning.
CK Hutchison said in a statement to the Hong Kong Stock Exchange on Wednesday that its board “strongly disagrees with the decision in Panama and the resulting actions.”
“The group continues to consult its legal counsel and reserves all rights in this matter, including resorting to further domestic and international legal proceedings,” the company said.
Following last week’s court ruling, the Panama Maritime Authority (AMP) announced that Danish company Maersk will temporarily take over operations of two ports previously operated by subsidiaries of a Hong Kong company.
The canal handles about 40 percent of U.S. container shipping and 5 percent of global trade. The canal’s construction was paid for by the United States, which operated it for a century before transferring control to Panama in 1999.
