Hong Kong has lodged a strong protest with Panama over its seizure of two ports on the Panama Canal long operated by a Hong Kong-based conglomerate, escalating a dispute that touches on global trade and great‑power tensions.
The Commerce and Economic Development Bureau said it had filed “stern” representations with Panama’s consulate in Hong Kong after authorities in the Central American state took control of the container terminals at Balboa and Cristóbal, which were run for nearly three decades by Panama Ports Company, a subsidiary of CK Hutchison.
The government condemned what it called a “flagrant” and “blatant” act, accusing Panama of damaging its own credibility and “seriously undermining” international trade rules and the spirit of long‑standing concession contracts.
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Panama moved on Monday to assume control of the ports after its Supreme Court last month struck down the law underpinning CK Hutchison’s concession as unconstitutional, voiding an extension granted in 2021. Officials from the Panama Maritime Authority entered the terminals to oversee a transition to interim operators, with reports that staff were told to leave and warned of possible criminal charges if they did not comply.
CK Hutchison has halted operations at the facilities and launched arbitration, denouncing the takeover and related decrees as unlawful and warning that the move threatens the safety and continuity of services at a waterway that carries about 5 per cent of global maritime trade. The company had previously agreed to sell most of its interest in the ports to a consortium led by US investment firm BlackRock in a deal worth around US$22.8 billion, a transaction now clouded by the legal row.
Beijing has also weighed in, with China’s foreign ministry vowing to “firmly safeguard” the firm’s legitimate rights and interests and warning Panama of possible consequences if the dispute is not handled properly. The episode comes amid renewed US efforts to limit Chinese and Hong Kong-linked influence around the canal, with Washington welcoming Panama’s seizure of the strategic hubs.
