Panama court rules Chinese control of canal ports unconstitutional
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In January 2026, Panama's Supreme Court declared the contracts allowing Hong Kong-based CK Hutchison to operate ports on both the Atlantic and Pacific sides of the Panama Canal unconstitutional. The ruling, concerning the Panama Ports Company (PPC), follows a 2025 lawsuit alleging the contracts violated Panama's constitution and involved improper tax payments. The contracts, in place since the 1990s and automatically renewed in 2021 for another 25 years, granted PPC control over the Balboa and Cristobal container ports. The decision also comes a year after then-US President Donald Trump threatened to seize control of the canal, citing concerns over Chinese influence and security. The Panama Canal is a strategic waterway handling approximately 5% of global maritime trade.
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Key Claims (5)
AI-ExtractedThe CK Hutchison subsidiary has held the contracts since the 1990s.
United States President Donald Trump threatened to seize control of the crucial passageway.
The decision regards facilities run by Hong Kong-based CK Hutchison.
Panama’s Supreme Court has ruled that the contracts under which a Chinese company operates ports on the Panama Canal are unconstitutional.
The waterway carries an estimated 5 percent of global maritime trade.
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