Hong Kong has lodged formal protests after Panama moved to take control of two strategic ports linked to the Panama Canal that had been operated for decades by a Hong Kong-based company, escalating tensions around one of the world’s most important trade corridors.
In a statement issued Tuesday, Hong Kong’s Commerce and Economic Development Bureau said it had delivered ‘stern protests’ to Panama’s consulate, expressing strong dissatisfaction and pledging to support the overseas interests of Hong Kong corporations.
The ports, located at both ends of the Panama Canal, had been run since 1997 by a subsidiary of CK Hutchison before becoming entangled in a broader geopolitical dispute tied to U.S. and Chinese influence in the region.
Panama assumed control of the facilities after the country’s Supreme Court invalidated the law approving the concession contract held by Panama Ports Company, effectively removing the legal basis for its operations. The operator has initiated arbitration proceedings, challenging the government’s actions.
The dispute has drawn international attention following remarks by U.S. President Donald Trump accusing China of exerting control over the canal. China’s Ministry of Foreign Affairs said it would safeguard the legitimate rights and interests of the company, signalling Beijing’s concern over the developments.
Panamanian authorities have sought to reassure global shipping markets that the waterway will continue to function without disruption.
The director of ports at the Panama Maritime Authority said the agency had taken possession of the facilities to guarantee continuity of operations, with a transitional management plan expected to run for up to 18 months while new long-term operators are selected.
President José Raúl Mulino said the move was not an expropriation, stating that control would remain with the government until the assets’ value is determined in accordance with legal procedures. He added that the decision was taken to comply with the law and was not directed against any specific country or company.
The seized ports are also part of a broader commercial deal in which CK Hutchison agreed to sell certain assets to a consortium of buyers, including BlackRock, a transaction that gained prominence after pressure from Washington to curb Chinese influence in strategic infrastructure intensified last year.
The situation underscores how geopolitical competition is increasingly intersecting with global logistics and trade operations.
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