The raid on CK Hutchison’s subsidiary marks the latest flashpoint in escalating tensions between the United States and China over control of Panama’s vital trade canal.
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Published February 27, 2026
Panamanian authorities have reportedly searched and removed property from a subsidiary of a Hong Kong company at the center of recent US-China tensions over the Panama Canal.
Panama Ports Company (PPC), owned by Hong Kong conglomerate CK Hutchison, said in a statement on Friday that the Panamanian government had “acted in disregard of the rule of law.”
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It denounced what it called “the latest steps to break into PPC and take property” during Thursday’s raid. It also accused authorities of entering private storage sites without notice and ignoring requests to protect sensitive company data.
Panama’s port company has come under increased scrutiny following US President Donald Trump’s claims that China is asserting undue influence over the main trade canal connecting the Pacific and Atlantic oceans.
The Panamanian government adamantly denies Chinese control of the waterway.
But last month, the country’s Supreme Court invalidated an agreement that gave the Panama Ports Corporation control of the two canal ports. The court ruled that the concessions offered to the company were unconstitutional.
China claimed the lawsuit was a response to “hegemonic” pressure.
The conference condemned Panama’s seizure of the port and its decision to temporarily hand over operations to Denmark’s Maersk and Switzerland-based MSC until a new agreement is reached.
Meanwhile, Panama’s President José Raul Mulino warned China to be “careful” in its operations.
“They need us more than we need them,” he said.
The two ports in question, Balboa on the Pacific side and Cristobal on the Atlantic, handle about 39 percent of Panama’s total container traffic.
Although the port is at the entrance to the Panama Canal, it is not under the supervision of the autonomous Panama Canal Authority, which operates the waterway.
Before taking office, President Trump repeatedly said he wanted control of the Panama Canal, claiming the United States was being “ripped off” by tolls.
The canal was previously controlled by the United States, but was turned over to Panama in 1999 under a 1977 treaty signed by then-President Jimmy Carter.
Prior to Friday’s raid, CK Hutchison had agreed to sell dozens of ports around the world, including a terminal in Panama, to a consortium led by U.S. multinational BlackRock and Mediterranean Shipping Company for $23 billion.
The deal has faced repeated delays and has been criticized by Beijing but welcomed by President Trump.
