In a major blow to China’s maritime influence in the Western Hemisphere, the United States has officially endorsed a Panamanian Supreme Court decision to strip a Hong Kong-based firm of its rights to operate two major ports at the entrances of the Panama Canal.
Thank you for reading this post, don't forget to subscribe!1. The Verdict: Unconstitutional Influence
The ruling, finalized in late January 2026, invalidated the decades-long concessions held by Panama Ports Company (PPC), a subsidiary of the Hong Kong giant CK Hutchison Holdings.
- The Findings: The court ruled that the 2021 extension of the contracts lacked proper legislative oversight and transparency.
- The Cost: Audits suggested the lopsided deal deprived the Panamanian government of over $1.3 billion in potential revenue.
- The Transition: President José Raúl Mulino has moved quickly to ensure stability, appointing APM Terminals (Denmark) to manage operations during the transition.
2. Washington’s Strategic Win
“Panama has taken a brave step in reclaiming its sovereignty over the world’s most vital waterway. The United States stands ready to support a transparent, competitive bidding process for these ports.” — U.S. State Department Statement
3. Beijing’s Rebuttal
The Chinese Ministry of Foreign Affairs and the Hong Kong government have reacted with sharp criticism, labeling the move a result of “geopolitical coercion” by Washington. The ruling has also thrown a wrench into a $23 billion global port sale involving CK Hutchison, BlackRock, and MSC, potentially leading to a massive international arbitration battle.
Comparison of Stakes
| Stakeholder | Primary Concern | Outlook |
| Panama | Revenue & Sovereignty | Seeking new Western investment to boost port income. |
| United States | Security & Logistics | Pushing for “Nearshoring” and removing CCP-linked entities from the Canal. |
| China | Trade Access | Likely to pursue legal action through international trade courts. |
