The court’s ruling followed an audit by Panama’s comptroller, which alleged irregularities in the 25-year extension of the concession granted in 2021.
Hong Kong's government on Friday said it "firmly rejects" a ruling by Panama's top court that annulled a concession allowing the city's CK Hutchison to operate ports at the crucial Panama Canal.
The government "strongly disapproves of and firmly rejects this ruling," a government statement read.
It added it "strongly opposes any foreign government using coercive, repressive or other unreasonable means in international economic and trade relations to seriously harm the legitimate business interests of Hong Kong enterprises."
The statement comes after Panama's Supreme Court ruled late on Thursday that the concession held by a subsidiary of Hong Kong's CK Hutchison Holdings to operate ports at either end of the Panama Canal is unconstitutional, an outcome that advances a US aim to block any influence by China over the strategic waterway.
The court’s ruling followed an audit by Panama's comptroller, which alleged irregularities in the 25-year extension of the concession granted in 2021.
The Trump administration made blocking China’s influence over the Panama Canal one of its priorities in the hemisphere.
Panama was Marco Rubio's first overseas stop as US Secretary of State.
Despite the insistence by Panama’s government and the canal authority that China has no influence over its operations, Rubio made clear that the US viewed the operation of the ports as a national security issue for the US.
President Donald Trump had gone so far as to say Panama should return the canal to US control.
The court's brief statement gave no guidance on what would happen to the ports now.
CK Hutchison's subsidiary, Panama Ports Company, said it has not been notified yet about the decision but insisted its concession was the result of transparent international bidding.
It said in its statement that the ruling "lacks legal basis and jeopardises not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country."
It said that it reserves all rights to proceed legally in Panama or elsewhere, but gave no more details.
A sale that apparently angered Beijing
CK Hutchison Holdings announced a deal last year to sell its majority stake in the Panamanian ports and others around the world to an international consortium that included BlackRock Inc.
But that deal appeared to stall over objections by the Chinese government.
The company said last July that it was considering seeking a Chinese investor to join as a significant member of the consortium, a move that some interpreted as way to please Beijing, but CK Hutchison hasn't said more since.
The awkward position the company found itself in highlights the challenges Hong Kong business elites face in navigating Beijing’s expectations of national loyalty, especially when relations between China and the United States are strained.
