President José Raúl Mulino said Panama will enforce a Supreme Court ruling voiding a ports concession despite warnings from China and pending arbitration by CK Hutchison.
By yourNEWS Media Newsroom
Panamanian President José Raúl Mulino on Wednesday vowed to uphold a Supreme Court ruling that voided a long-standing concession allowing Hong Kong-based CK Hutchison to operate two ports at the entrances of the Panama Canal, rejecting warnings from Beijing that the Central American nation would face consequences for enforcing the decision.
“Panama is a dignified country and will not allow itself to be threatened by any country on Earth,” Mulino said during a Feb. 5 briefing, adding that the concession to operate the ports would “never again” be granted to a single company.
The remarks came after Panama’s high court on Jan. 29 struck down a contract under which CK Hutchison subsidiary Panama Ports had operated the Balboa and Cristobal terminals—located at the Pacific and Atlantic ends of the canal—since the 1990s. The concession had been renewed in 2021 for an additional 25 years.
The ruling drew swift reaction from Beijing. In a Feb. 3 commentary circulated on the Chinese social media platform WeChat, the Hong Kong and Macao Affairs Office warned Panamanian authorities to “recognize the situation” and “correct their course,” saying that “if persisting in the current course there will be a heavy price to pay, both politically and economically.”
Mulino said the court’s decision is final and must be executed, emphasizing the distinction between Panama’s democratic institutions and systems controlled by the Chinese Communist Party. Hours earlier, he said his government would take “appropriate actions” in response to the warnings. In a Feb. 4 post on X, Mulino wrote that Panama “is a state governed by the rule of law and respects the decisions of the judiciary, which is independent of the central government,” adding that the foreign ministry would issue a formal response.
U.S. officials welcomed the ruling. Secretary of State Marco Rubio described it as an encouraging step amid broader U.S. efforts to counter Chinese influence over the canal, a strategic artery for global trade. The Chinese foreign ministry and the Hong Kong government, however, voiced strong opposition.
On Feb. 4, CK Hutchison said Panama Ports—90 percent owned by the conglomerate—had initiated arbitration against Panama under International Chamber of Commerce rules. In a filing to the Hong Kong Stock Exchange, the company said it had been advised that the court ruling and related government actions were “inconsistent with the relevant legal framework and the law that approved the concession contract,” adding that it “reserves all rights, including recourse to additional national and international legal proceedings.”
The arbitration introduces uncertainty for the two ports, which sit at the center of CK Hutchison’s broader agreement to sell its global ports business—spanning 43 ports in 23 countries—to a BlackRock-led consortium. After the $22.8 billion deal was announced in March 2025, China’s top market regulator said it would review the transaction, and state media published a series of critical commentaries. Under pressure from Beijing, CK Hutchison later said it would seek to include a “major strategic investor” from mainland China as a significant member of the consortium.
At a Feb. 5 briefing in Beijing, Chinese foreign ministry spokesperson Lin Jian said China would “firmly defend” the legitimate rights and interests of Chinese companies when asked about CK Hutchison’s arbitration move. Lin was also questioned about a Bloomberg report that said Beijing had instructed state firms to pause talks on new projects in Panama, a step that could derail potential investments worth billions of dollars. Lin neither confirmed nor denied the report, saying only that China’s position on the ports issue is “clear.”
As the dispute unfolds, Panama has moved to ensure continuity at the canal. APM Terminals, a unit of Danish shipping company Maersk, said last week it is prepared to temporarily operate the Balboa and Cristobal ports at the government’s request, stating the move would help “mitigate any risks that could impact essential services for regional and global trade and provide support to Panama’s logistics hub.”
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