China announced on Friday that the government will take “necessary measures” following a landmark ruling by the Supreme Court of Panama that declared Chinese control over strategic ports at the Panama Canal violates the nation’s constitution.
On Thursday, Panama’s highest court annulled the long-standing concession held by Hong Kong-based giant CK Hutchison Holdings. This significant ruling prevents the company from continuing its operations at container terminals located on both sides of the canal. The decision follows a rigorous audit by Panama’s comptroller regarding the 25-year extension that officials granted back in 2021.
“The Chinese side will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” stated foreign ministry spokesman Guo Jiakun. Although the spokesman spoke firmly during a regular briefing, he did not specify the exact steps Beijing intends to take.
Company Defends Legal Rights
The Panama Ports Company (PPC), a subsidiary of CK Hutchison, maintains that it secured the concession through a transparent international bidding process. Furthermore, the company issued a formal statement expressing deep concern over the legal precedent this sudden annulment sets for investors.
“The new ruling … lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend and indirectly on port activity but also the rule of law and legal certainty in the country,” the company stated. PPC has managed these vital terminals since the late 1990s, operating separately from the primary waterway administration.
This judicial move aligns closely with the strategic goals of the Trump administration, which actively seeks to limit Chinese influence. Consequently, Washington views the control of these ports as a primary national security concern for the entire Western Hemisphere.
US Secretary of State Marco Rubio chose Panama for his first official overseas visit to emphasize this specific diplomatic priority. Earlier in 2025, President Trump even suggested that the United States should reclaim control of the canal to counter Beijing. Nevertheless, the Panamanian government maintains that its sovereignty over the waterway remains non-negotiable and will stay under local control.
