Hong Kong's CK Hutchison has initiated arbitration against Panama after the country's Supreme Court voided its canal port concessions. The action follows Beijing's warning that Panama could pay a heavy political and economic price for the ruling.
The Hong Kong conglomerate CK Hutchison, led by the family of billionaire Li Ka-shing, announced on February 3, 2026, that its subsidiary Panama Ports Company (PPC) has commenced arbitration proceedings against the Republic of Panama under the applicable concession contract and the Rules of Arbitration of the International Chamber of Commerce. The group strongly disagrees with the decision by the Plenary of Panama's Supreme Court of Justice, which could take effect in early February.
In a notice, the company stated: “On February 3, 2026, PPC commenced, and will pursue vigorously, arbitration proceedings against the Republic of Panama pursuant to the applicable concession contract and the Rules of Arbitration of the International Chamber of Commerce.” It added: “The group continues to consult its legal counsel and reserves all rights, including recourse to additional national and international legal proceedings in the matter.”
This development came a day after Beijing's Hong Kong and Macau Affairs Office published a commentary calling the ruling “self-sabotaging” to Panama’s creditworthiness, inflicting profound damage on its business environment and severely undermining international trade rules. The commentary, posted on the office’s WeChat account under the pen name “Gang Ao Ping,” said: “The Panamanian authorities’ insistence on this despite widespread concerns is tantamount to shooting themselves in the foot.”
The case involves ports at Balboa and Cristobal along the Panama Canal, highlighting tensions in China-Panama relations that could impact regional trade.
