Hong Kong authorities are voicing strong objections to Panama’s decision to take over two strategically important ports along the Panama Canal that had been managed by a Hong Kong-based corporation for more than 25 years.
Officials from Hong Kong’s Commerce and Economic Development Bureau announced Tuesday they have filed formal complaints with Panama’s diplomatic office, stating they expressed “strong opposition and dissatisfaction” while pledging to “staunchly support the legitimate rights and interests of Hong Kong corporations overseas.”
The facilities, positioned at both ends of the crucial shipping waterway, have been under the management of a CK Hutchison subsidiary since 1997 but became entangled in legal challenges amid escalating rivalry between the United States and China for regional dominance. The situation gained international spotlight when President Donald Trump claimed China was “running the Panama Canal.”
Panama’s administration assumed control of both port facilities Monday following a Supreme Court decision that invalidated legislation authorizing the operating agreement with Panama Ports Company, a CK Hutchison subsidiary. The court’s decision eliminated the legal foundation for the company’s port operations, prompting the firm to pursue arbitration against Panama.
Beijing also entered the dispute Tuesday, with Foreign Ministry spokesperson Mao Ning declaring at a regular press briefing: “China will firmly safeguard the company’s legitimate and lawful rights and interests.”
Panamanian officials have pledged to maintain uninterrupted canal operations.
A representative from Panama’s Maritime Authority stated during a news conference that the agency “took possession of its ports and will guarantee continuity of operations.” The official noted that leadership will approve temporary management arrangements lasting up to 18 months while permanent operators are chosen.
In a subsequent national television address, President José Raúl Mulino clarified that the action was not an appropriation of property, but the government would maintain port oversight “until their real value is determined for corresponding actions.” He emphasized that “everything done was not against anyone, but in compliance with the law,” addressing concerns raised by the company and Chinese officials.
The port facilities are scheduled for sale as part of an agreement between CK Hutchison and a purchasing consortium that includes Blackrock, following pressure from Trump last year to diminish Chinese involvement in the region.
