Hong Kong conglomerate says Panama Canal ports seized by authorities

Al Jazeera

February 24, 2026

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Hong Kong-based conglomerate CK Hutchison has announced that the Panamanian government has taken over administrative and operational control of its two ports at Balboa and Cristobal, following a Supreme Court ruling. The company described the move as an "unlawful" takeover, marking the culmination of a prolonged legal battle involving China, the United States, and Panama. The Panamanian government justified the action under a decree citing "urgent social interest," allowing the maritime authority to seize port assets, including equipment and systems. The conflict stems from a yearlong dispute over CK Hutchison's concession to operate the ports, which was renewed in 2021 for another 25 years. However, last month's Supreme Court ruling deemed the concession unconstitutional, leading to the government's decisive intervention. This move has sparked tensions with China, as the Hong Kong and Macao Affairs Office labeled the decision "absurd" and warned of economic repercussions for Panama. The situation is deeply intertwined with broader geopolitical dynamics. Following former U.S. President Donald Trump's return to power in 2024, he had repeatedly accused the Chinese government of exerting influence over the Panama Canal, vowing to reclaim control if necessary. While Trump's tenure ended earlier this year, the echoes of his rhetoric continue to resonate, with the U.S. likely maintaining a vested interest in the canal's operations. Panama's President Jose Raul Mulino has strongly rejected China's threats, emphasizing the country's commitment to the rule of law and judicial independence. The government's seizure of the ports appears to be a calculated assertion of sovereignty, potentially setting a precedent for future disputes over foreign investments in strategic locations. This development underscores the intricate interplay of economic, political, and legal factors at play in global trade infrastructure. As tensions between major powers like China and the United States persist, such conflicts highlight the vulnerability of international concessions to sudden shifts in national policy and judicial rulings. The outcome could have significant implications for

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Originally published on Al Jazeera on 2/24/2026