A cargo ship sails past the Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, March 13, 2025. Photo: VCG

CK Hutchison Holdings, controlled by Li Ka-shing, on Wednesday issued a voluntary announcement saying its board strongly opposes a Panamanian court ruling and related government actions, adding that Panama Ports Company (PPC) will actively and resolutely pursue arbitration against the Panamanian government.

The announcement was made in response to the ruling by Panama's Supreme Court of Justice declaring Law No. 5 of 16 January 1997, which authorized PPC's concession to operate the ports of Balboa and Cristóbal, "unconstitutional." The ruling is expected to take effect in early February 2026, according to Hong Kong Business.

CK Hutchison said in a filing to the Hong Kong Stock Exchange that PPC—a subsidiary 90 percent indirectly owned by the group — has obtained a legal opinion concluding that the decision announced by Panama's Supreme Court, as well as the Panamanian government's related actions regarding PPC's terminal operations at the two ports, are inconsistent with the relevant legal framework and the laws authorizing the concession agreement.

As of Tuesday, PPC has initiated — and will actively and resolutely pursue — arbitration against the Republic of Panama in accordance with the applicable concession agreement and the Arbitration Rules of the International Chamber of Commerce (ICC). The board strongly opposes Panama's ruling and the related actions. The group will continue to consult its legal advisers and reserves all rights, including pursuing further domestic and international legal proceedings in connection with the matter, per the statement.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times that the CK Hutchison's statement is a normal and necessary response, as the company is directly affected by the ruling and needs to clearly state its position after the court's decision, while also paving the way for follow-up legal action.

In recent days, after Panama issued the unreasonable ruling, it has drawn wide criticism. On Tuesday, the Hong Kong and Macao Affairs Office of the State Council published an article titled "HK, Macao Commentary: Panama's Self-Inflicted Backfire," condemning the ruling as disregarding facts and breaching good faith, and saying it seriously infringes upon the lawful rights and interests of Hong Kong enterprises.

The article said the decision has rightfully drawn firm opposition from both the Chinese central government and the Hong Kong Special Administrative Region government, and has sparked strong criticism across Hong Kong society. It stressed that the Chinese government will resolutely safeguard the legitimate rights and interests of Chinese enterprises and will not sit idly by in the face of hegemonic or coercive actions.

The Hong Kong Special Administrative Region (HKSAR) government on Friday expressed strong dissatisfaction and firm opposition to the ruling. 

A government spokesperson said the HKSAR government strongly opposes any foreign government's use of coercion, pressure or other unreasonable means in international economic and trade relations, stressing that such actions seriously undermine the lawful business operations and legitimate rights of Hong Kong enterprises in the locality.

Such moves will also severely damage the local business environment, inevitably shake investor confidence, and harm bilateral relations as well as the long-term economic development of both sides, the spokesperson said.

Chinese Foreign Ministry spokesperson Lin Jian said on Monday that China will firmly protect the legitimate and lawful rights and interests of Chinese companies, when asked to comment on the statement by Danish shipping company Maersk that it is willing to assume temporary management of the two ports in Panama operated by CK Hutchison, following Panama's Supreme Court ruling that CK Hutchison's concession is unconstitutional.

Lin emphasized at a routine press conference on Monday that "we've made clear China's position on relevant ports in Panama."

Chinese expert Zhou Mi said the Panamanian government's move is likely influenced by pressure from the US, aimed at reducing the role of Chinese companies in the Panama Canal while expanding US influence. Zhou warned that Panama's actions could undermine its credibility as an investment destination. If investors see that their legitimate interests may not be protected after committing capital, it could deter future foreign investment and damage the country's international reputation. 

He added that given the significant volume of shipping involving Chinese and Latin American trade through the canal, rising uncertainty may prompt companies to reassess logistics routes, potentially affecting the canal's long-term role and sustainability.