Panama's Supreme Court has annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison, leaving the future ownership of some Panama Canal operations unclear and possibly upsetting its plans
Panama's Supreme Court has annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison, leaving the future ownership of some Panama Canal operations unclear and possibly upsetting its plans to sell some terminals.
Panama Ports Company (PPC), a CK Hutchison subsidiary, has held contracts since the 1990s to operate container terminals at the canal's Pacific and Atlantic entrances, separate from the waterway's operations.
The decision could disrupt CK Hutchison's proposed $23 billion sale of dozens of ports worldwide, including the Panamanian terminals, to a consortium led by BlackRock and Mediterranean Shipping Company (MSC).
The ruling comes amid growing U.S.-China rivalry over global trade routes and marks a win for Washington. U.S. President Donald Trump has pushed to curb Chinese influence over the Panama Canal, which carries about 5% of global maritime trade.
U.S. Secretary of State Marco Rubio said Washington was encouraged by the decision, and John Moolenaar, who chairs the U.S. House Select Committee on China, thanked Trump and Panamanian President Jose Raul Mulino.
"This is a win for America, Panama, and all of our allies who recognize the Canal's importance to national security and the world economy," he said in a statement.
"China's malign influence
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