Panama Stands Firm Against China Over Canal Court Ruling

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Panamanian President José Raúl Mulino stated that Panama will remain firm in its ruling against Hong Kong-based CK Hutchison Holdings, whose subsidiary operates ports in the Panama Canal. This comes after Panama's Supreme Court ruled that the company's concession was unconstitutional, a decision seen as a win for the U.S. in its efforts to block Chinese influence over the strategic waterway. China had warned Panama would pay 'a heavy price' if the ruling was upheld, but Mulino said Panama is a 'dignified country' that will not allow itself to be threatened.

Why it matters

The Panama Canal is a critical global trade route, and the legal battle over its operations has become a proxy for the geopolitical tensions between the U.S. and China. Panama's decision to side against the Chinese-linked company is seen as a victory for the U.S., but it also risks retaliation from China, which has significant economic influence in the region.

The details

Last week, Panama's Supreme Court ruled that the concession held by a subsidiary of CK Hutchison Holdings in the Panama Canal was unconstitutional. In response, China warned Panama would pay 'a heavy price' if the ruling was upheld. However, President Mulino stated that Panama will remain firm in its decision and will not be threatened by any country. Until the court's ruling is executed, Panama's Maritime Authority will work with the CK Hutchison subsidiary to ensure continuing port operations. Once the concession is formally ended, a subsidiary of Danish logistics company A.P. Moller-Maersk will operate the ports in a transitional phase until a new concession can be bid and awarded.

• On February 5, 2026, Panamanian President José Raúl Mulino made his comments in a morning press briefing.
• Last week, Panama's Supreme Court ruled that the concession held by a CK Hutchison Holdings subsidiary in the Panama Canal was unconstitutional.

What they’re saying

What’s next

Until the court's ruling is executed, Panama's Maritime Authority will work with the CK Hutchison subsidiary to ensure continuing port operations. Once the concession is formally ended, a subsidiary of A.P. Moller-Maersk will operate the ports in a transitional phase until a new concession can be bid and awarded.