Panama seizes China-owned ports at canal entrances

Panamanian authorities have forcibly taken control of two ports at the entrances to the Panama Canal owned by the Chinese (Hong Kong–based) conglomerate CK Hutchison.

Company employees were expelled from the port premises and warned of criminal liability in case of non-compliance, Caliber.Az reports, citing foreign media.

Panama’s Maritime Authority assumed control of the Balboa terminal (Pacific entrance) and Cristóbal terminal (Atlantic entrance) following the publication of a ruling by Panama’s Supreme Court declaring the concession agreement with CK Hutchison’s subsidiary, Panama Ports Company, unconstitutional. The authorities have taken possession of all movable assets of the terminals, including cranes, vehicles, and computer systems. Panamanian President José Raúl Mulino stressed that this concerns temporary management of the assets until their real value is determined, rather than expropriation.

CK Hutchison described Panama’s actions as “illegal,” stating that none of the authorities’ steps had been agreed upon. The conglomerate is considering legal action in national and international courts, including arbitration at the International Chamber of Commerce. The Hong Kong government expressed “strong protest,” calling the situation a violation of the rights of Hong Kong enterprises.

On February 24, Chinese Foreign Ministry spokesperson Mao Ning stated that China would firmly safeguard the lawful rights and interests of the company.

Temporary management of the ports has been distributed among European shipping giants: the Balboa terminal will be transferred to APM Terminals, part of Denmark’s Maersk Group, while Cristóbal will be handed over to Terminal Investment Limited, which belongs to the Swiss-Italian Mediterranean Shipping Company. The transitional period is set for 18 months, after which an international tender will be announced to select permanent operators. Panama’s labor minister noted that there will be no layoffs among the 1,200 port employees.

Approximately 40% of U.S. container traffic and 5% of global trade pass through the Panama Canal. In January 2025, Donald Trump stated that Chinese infrastructure around the canal threatened U.S. security and pledged to “take back” control. In March 2025, CK Hutchison agreed to sell a 90% stake in Panama Ports Company to a consortium led by the U.S. investment fund BlackRock for $22.8 billion, but China blocked the deal. According to Le Monde, the Panamanian court’s ruling effectively puts an end to the sale.

By Khagan Isayev