Tensions Rise as Panama Gains Control of Strategic Hong Kong Ports on Canal

BANGKOK – Tensions have risen as Hong Kong voices its disapproval over Panama’s recent appropriation of two strategic ports on the Panama Canal, a crucial artery for international trade. These ports, managed for decades by a Hong Kong-based firm, have become the latest flashpoint in the ongoing geopolitical rivalry between the United States and China.

In a robust response, the Commerce and Economic Development Bureau of Hong Kong issued a statement on Tuesday, denouncing Panama’s actions. They expressed their “stern protests” directly to the Panamanian consulate, while firmly asserting their discontent and pledging unwavering support for the rights of Hong Kong enterprises operating overseas.

The ports, situated at both ends of the Panama Canal, have been under the operation of CK Hutchison’s subsidiary since 1997. However, a legal quagmire emerged, intensified by U.S. President Donald Trump’s previous allegations that China was “running the Panama Canal.” This dispute has now drawn international attention to the ports.

On Monday, Panama’s government seized control after its Supreme Court invalidated a law that granted the concession contract to Panama Ports Company, CK Hutchison’s subsidiary. This court decision left the company without a legal foundation to continue its operations, prompting it to initiate arbitration proceedings against Panama.

Meanwhile, China’s Ministry of Foreign Affairs has not remained silent. During a press briefing on Tuesday, spokesperson Mao Ning affirmed China’s commitment to “firmly safeguard the company’s legitimate and lawful rights and interests,” reflecting the broader geopolitical stakes involved.

Panama said it would ensure smooth operation of the waterway.

The director of ports for Panama’s Maritime Authority, said at a press conference that the agency “took possession of its ports and will guarantee continuity of operations.” He added that the entity’s board of directors will approve a plan for transitional operation for up to 18 months until long-term operators are selected.

Later in a televised message to the nation, President José Raúl Mulino said that the seizure was not an expropriation, but the government would keep control of the ports “until their real value is determined for corresponding actions.” He also assured that “everything done was not against anyone, but in compliance with the law,” referring to challenges from the company and China’s government.

The ports are also due to be sold as part of a deal struck by CK Hutchison with a group of buyers including Blackrock after Trump began putting pressure on Panama to reduce Chinese influence last year.

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AP writer Alma Solís contributed to this report from Panama City.