February 7, 2026 — Hong Kong has expressed its disapproval of a court ruling in Panama that annulled the contract granted to Li Ka-shing's CK Hutchison Holdings Ltd. to manage two ports near the country's important canal.
During a meeting with Panama’s consul general, José Ramón de Jesús Varela Fábrega, Hong Kong's Commerce and Economic Development Secretary, Algernon Yau, raised concerns that this ruling could “seriously undermine international trade rules.”
Just last week, Panama’s supreme court invalidated CK Hutchison’s contract, marking a victory for U.S. President Donald Trump's efforts to limit Chinese influence on key infrastructure in the Americas.
In a post on Facebook, Yau expressed strong disagreement with the ruling, which he described as unconstitutional regarding the contracts for the continued port operations. The post also highlighted the meeting with the consul general.
Yau pointed out that CK Hutchison has invested significantly and generated many jobs in Panama over the years. He urged the Panamanian government to honor contract agreements and ensure a fair business environment for foreign companies.
China, the second-largest user of the Panama Canal after the U.S., warned that Panama would face a “heavy price” for what it sees as yielding to American dominance.
In response to the court ruling, China has instructed its state firms to pause discussions on new projects in Panama as part of its wider retaliatory measures. This information was reported by Bloomberg News, citing anonymous sources.
The decision by the Panama court could heighten tensions between Washington and Beijing, even as both sides attempt to uphold a trade truce before Trump’s planned visit to China in April.
Additionally, a buying group that includes BlackRock Inc. is reportedly considering backing out of a deal due to demands for a majority stake from state-owned China Cosco Shipping Corp., as mentioned by the Financial Times. Bloomberg noted that the timeline for the transaction remains uncertain due to unresolved issues, including Cosco’s involvement and the need for approvals from various national regulators.