Panama out, but study says China investing US$23.9 billion in world’s seaports

A subsidiary of CK Hutchison Holdings, Panama Ports Company (PPC), has accused the Panamanian government of an "unnotified intrusion" at a storage facility. The incident occurred after the Panamanian Supreme Court ruled a law approving PPC's concession unconstitutional. PPC claims the government's actions constitute an "illegal takeover" of port facilities in the Panama Canal and a failure to comply with legal obligations. The company alleges the government seized proprietary information during the raid on its private storage facility, undermining due process. PPC had previously requested clear coordination mechanisms regarding access to and protection of its privileged information. The company strongly objects to the government's actions and the occupation of its property.

In February 2026, Panamanian authorities searched and removed property from the Panama Ports Company (PPC), a subsidiary of Hong Kong's CK Hutchison, escalating tensions between the US and China over control of the Panama Canal. PPC condemned the search as unlawful, accusing the government of seizing property and disregarding data security. The incident follows increased scrutiny after US concerns about China's growing influence over the canal. Panama's Supreme Court previously annulled deals granting PPC control over two ports, deeming them unconstitutional. China criticized the port seizure and Panama's decision to temporarily allow Maersk and MSC to operate the ports, while Panama's President warned China to be cautious.

Hong Kong has formally complained to Panama's government after it took control of two ports on the Panama Canal, accusing the Panamanian authorities of taking them over by force. The ports had been run by a Hong Kong-based company, CK Hutchison, for more than two decades. Last month, Panama's Supreme Court annulled the contracts allowing the firm to operate the container ports, citing them as "unconstitutional". The move has disrupted a planned $22.8bn sale of the ports to a US investment firm. The complaint comes amid controversy over China's alleged control of the canal, with US President Donald Trump claiming it was under Chinese operation during his inauguration address last January. The Panama Canal Authority operates the waterway, which handles about 5% of global maritime trade volume.

In February 2026, the Panamanian government seized administrative and operational control of the Balboa and Cristobal ports on the Panama Canal from Hong Kong conglomerate CK Hutchison. The takeover follows a recent Supreme Court ruling that deemed CK Hutchison's concession to operate the ports "unconstitutional," despite a 2021 renewal for 25 years. The Panama Maritime Authority has been authorized to occupy the ports and take over port property, citing "reasons of urgent social interest." This action is the latest development in a year-long dispute involving CK Hutchison, China, the United States, and Panama. Since December 2024, Donald Trump has alleged Chinese control over the canal and vowed to reclaim it, contributing to the complex geopolitical situation.

CK Hutchison, a Hong Kong conglomerate, is condemning Panama's government for taking over its Balboa and Cristobal ports. The Panama Maritime Authority acted on a presidential decree, citing "reasons of urgent social interest," following a Supreme Court ruling that declared CK Hutchison's subsidiary's concession unconstitutional. CK Hutchison claims this takeover is the "culmination of a campaign" against its Panama Ports Company (PPC). The company states that Panama's actions made it impossible for PPC to continue operations, leading to their cessation on February 23, 2026. Government representatives then entered the ports and informed PPC that the concession was terminated.