By: Staff Writer
February 6, 2026
The Republic of China’s hold over the Panama Canal has come to an end as per a Panama Supreme Court ruling that dismisses a Chinese Tycoon’s bid to takeover the canal from Hong Kong based Hutchison Ports Group Ltd and instead have chosen the Danish firm Maersk
Danish firm Maersk will temporarily operate two ports on the Panama Canal after a court ruled that contracts given to a Hong Kong firm were unconstitutional.
The Panama Maritime Authority (AMP) announced the changes on Friday, a day after the country’s Supreme Court invalidated port contracts held by Hong Kong-based firm CK Hutchison.
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 U.S. Secretary of State Marco Rubio’s first overseas stop as the United States’ top diplomat.
Despite the insistence by Panama’s government and the canal authority that China has no influence over its operations, Rubio made clear that the U.S. viewed the operation of the ports as a national security issue for the U.S. President Donald Trump had gone so far as to say Panama should return the canal to U.S. control.
The court’s brief statement gave no guidance on what would happen to the ports now.
Political analyst Edwin Cabrera said the next procedural step will be notifying the parties of the court’s decision. Then the issue of what to do with the ports goes to Panama’s executive branch, specifically the Panama Maritime Authority.
“I have the impression from conversations that I have had with some people that the operation (of the ports) will not stop,” Cabrera said.
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 the deal appeared to stall over objections by the Chinese government.
José Raúl Mulino, Panama’s president, said on Friday that until the court’s ruling was executed maritime officials would work with Panama Ports Company (PPC), a subsidiary of Hong Kong’s CK Hutchison, to ensure continuing operations.
PPC said it had not been notified about the decision and insisted its concession was the result of transparent international bidding.
It said in a statement that the ruling lacked “legal basis and jeopardises not only PPC and its contract, but also the wellbeing 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 it reserved all rights to proceed legally in Panama or elsewhere but gave no more details.
The Hong Kong government firmly rejected the ruling, saying it strongly opposed any foreign government using coercive, repressive or other unreasonable means to seriously harm the business interests of Hong Kong enterprises. It said the Panamanian government should respect the spirit of contracts and provide a fair business environment.
“Given the current situation in Panama, Hong Kong enterprises should carefully review their existing and future investments there,” it said.
In Beijing, China’s foreign ministry spokesperson, Guo Jiakun, told reporters that China would take all necessary measures to safeguard the legitimate rights and interests of “the Chinese company”, without elaborating on the potential steps.