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Hong Kong-based CK Hutchison commenced arbitration proceedings against Panama on Thursday, seeking damages of more than $1.5 billion for breaches of treaty obligations and international law, according to a statement on the website of the company.

CK Hutchison said it notified Panama of a treaty dispute on February 4, 2026, following a year-long State attack campaign on the company’s assets, and sought to resolve the dispute to no avail.
 
In early 2025, Panama suddenly launched a State attack campaign against CK Hutchison investments that included a sudden new investigation that lacked due process, a reversal of its longstanding legal position that had protected the ports concession for three decades as a matter of law, pursuing a governmental assault on the constitutionality of its own “contract-law” and concession, and the development of a scheme to replace CK Hutchison subsidiary Panama Ports Company, S.A. (PPC), said the statement.
   
After notification of the treaty dispute in early 2026, Panama intensified its State campaign through executive actions and a radical takeover of the Balboa and Cristóbal port terminals controlled by PPC February 23, 2026, taking over property, equipment, technology, employees, and proprietary and protected documents and materials, all at great damage, CK Hutchison said.
  
Panama failed to take steps to resolve the treaty dispute and instead continued its campaign of attacks and disinformation, CK Hutchison said.

In response to a question on Panama’s authorities taking control of two ports from CK Hutchison, Chinese Foreign Ministry spokesperson Mao Ning stated at a press conference on February 24 that China’s position on relevant Panamanian ports is clear, and China will firmly protect the company’s legitimate and lawful rights and interests.

“I believe you have noticed that the company concerned has issued a statement indicating it will reserve all rights, including the right to pursue legal proceedings. China will firmly safeguard the company’s legitimate and lawful rights and interests,” Mao said.

Global Times