China warns Panama as Hong Kong firm contests ruling on canal ports

China calls court ruling against Hong Kong firm CK Hutchison on Panama-canal" class="entity-link entity-location" data-entity-id="8414" data-entity-type="location">Panama Canal ports ‘absurd’ and ‘shameful’.Published On 4 Feb 2026Hong Kong firm CK Hutchison has announced the start of international arbitration proceedings against Panama after the country’s top court annulled its contract to operate two ports on the strategic Panama-canal" class="entity-link entity-location" data-entity-id="8414" data-entity-type="location">Panama Canal amid pressure from the United States.The announcement on Wednesday comes as the Chinese government’s Hong Kong and Macau Affairs Office (HKMAO) said that Panama’s ruling against CK Hutchison subsidiary – the Panama-ports-company" class="entity-link entity-organization" data-entity-id="21470" data-entity-type="organization">Panama Ports Company – was “absurd”, “shameful and pathetic”.Recommended Stories list of 3 itemslist 1 of 3Why is China angry about a plan to sell two ports on the Panama-canal" class="entity-link entity-location" data-entity-id="8414" data-entity-type="location">Panama Canal?list 2 of 3Audit finds Hong Kong company breached Panama-canal" class="entity-link entity-location" data-entity-id="8414" data-entity-type="location">Panama Canal ports contractlist 3 of 3Panama declares emergency in western province after deadly pension protestsend of listThe Panamanian court had “ignored the facts, breached trust, and seriously damaged the legitimate rights and interests of enterprises in Hong Kong, China”, the HKMAO said on Tuesday.“China has sufficient means and tools, and sufficient strength and ability to defend a fair and just international economic and trade order,” the office said.“Heavy prices both politically and economically will surely be paid” by Panama if it insists on going ahead with the ruling, the office warned.The decision last week by Panama’s Supreme Court to annul the Hong Kong firm’s contract to operate two ports on the canal followed after US President Donald Trump threatened to seize control of the crucial passageway that connects the Pacific and Atlantic oceans, claiming the waterway was effectively under Chinese control and therefore a security threat to Washington.Without naming the US, the Chinese statement further said that “some country has … used bullying tactics to force other countries to obey their will,” and that Panama had “willingly succumbed” to hegemonic power.