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A Panamanian court has voided a port contract held by a Hong Kong subsidiary, prompting assurances from President José Raúl Mulino that canal traffic will not be disrupted.
The court ruled Thursday that the port concession granted to Panama Ports Company — a subsidiary of Hong Kong’s CK Hutchison Holdings — was unconstitutional. The decision was welcomed by the U.S. and criticized by Beijing, according to The Associated Press.
“Beijing plays rough. Trump plays rougher,” China expert Gordon Chang told Fox News Digital in an email. “The American president just showed the Chinese who’s boss in the Western Hemisphere.”
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Aerial view of the port of Rodman in Panama City taken on January 30, 2026. (MARTIN BERNETTI / AFP via Getty Images)
“President Trump, by extracting Nicolas Maduro and his wife from Caracas, ended Chinese influence in Venezuela,” Chang added. “With the termination of the Hutchison port concessions in Panama, countries are getting the message that Trump is determined to drive China out of the region and that they should get on board with the American president.”
Mulino said Friday that port operations at both ends of the canal will continue as the ruling is carried out, adding that Panama’s Maritime Authority will work with Panama Ports Company to keep the ports running, AP reported.
Once the concession is formally terminated, Mulino said a local subsidiary of Danish shipping giant A.P. Moller-Maersk will temporarily operate the ports while the government opens a new bidding process for a long-term concession.
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Panamanian President José Raúl Mulino waves before giving a speech at his swearing-in ceremony at the Atlapa Convention Centre in Panama City, on July 1, 2024. (AP Photo/Matias Delacroix)
The court decision followed an audit by Panama’s comptroller that identified irregularities in a 25-year extension of the concession granted in 2021, according to AP.
The ruling aligns with long-standing U.S. concerns over China’s presence near the Panama Canal.
Limiting Beijing’s influence in the region has been a priority of the Trump administration, and Panama was the first overseas stop this year for U.S. Secretary of State Marco Rubio, AP reported.
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Secretary of State Marco Rubio appears before the Senate Foreign Relations Committee on Jan. 28, 2026. (J. Scott Applewhite/AP Photo)
“The United States is encouraged by the recent Panamanian Supreme Court’s decision to rule port concessions to China unconstitutional,” Rubio posted to X on Friday.
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Panama Ports Company said it has not been formally notified of the ruling and argued it lacks legal basis, warning it could harm thousands of Panamanian families and undermine legal certainty. The Hong Kong government also rejected the ruling, according to AP.