Hong Kong has lodged a formal protest after Panama’s top court struck down contracts held by Li Ka-shing’s CK Hutchison Holdings to operate two ports near the Panama Canal, a move that has sharpened geopolitical tensions around one of the world’s most strategic waterways.
Commerce and Economic Development Secretary Algernon Yau raised Hong Kong’s objections during a meeting on Friday with Panama’s Consul General, José Ramón de Jesús Varela Fábrega, warning that the ruling would seriously undermine international trade rules and damage confidence in the global business environment.
Last month’s court decision annulled CK Hutchison’s long-standing agreements with the Panamanian government, a development widely seen as aligning with US President Donald Trump’s push to curb Chinese influence over key infrastructure across the Americas. The ruling has been welcomed in Washington but strongly criticised in both Hong Kong and Beijing.
In a statement posted on Facebook, Hong Kong’s Commerce and Economic Development Bureau said Yau “strongly disagreed with and opposed” the judgment declaring the port contracts unconstitutional. The bureau said the issue was discussed directly with Panama’s Consul General during the meeting.
Yau argued that CK Hutchison has made substantial investments in Panama over many years and has created significant employment opportunities, adding that the Panamanian government should respect the spirit of contracts and ensure a fair and just business environment for international companies.
China, the second-largest user of the Panama Canal after the United States, last week warned that Panama would pay a “heavy price” for what it described as yielding to American hegemony.
Beijing has already asked state-owned companies to halt discussions on new projects in Panama as part of a broader retaliatory response.
The court’s decision risks inflaming tensions between Washington and Beijing at a delicate moment, as both sides attempt to preserve a fragile trade truce ahead of President Trump’s planned visit to China in April.
Adding to the uncertainty, reports suggest that a buyer group including BlackRock has considered pulling out of a related deal after China Cosco Shipping Corp., a state-owned giant, reportedly pushed for a majority stake.