Panama Canal Court Decision Triggers Sharp China Response

China has sharply criticized a ruling by Panama’s top court that voided a Hong Kong company’s license to operate ports at both ends of the Panama Canal, warning Panama it could face serious political and economic consequences, according to Chinese state statements.

The decision struck down the contract held by CK Hutchison subsidiary Panama Ports Company, citing constitutional violations.

The ruling was widely viewed as a major strategic win for U.S. President Donald Trump, who has argued that Chinese influence over the canal poses a national security risk.

China ramps up threats over Panama Canal ruling that handed Trump a major victory https://t.co/WE7A2okozw

— CNBC (@CNBC) February 4, 2026

China’s Hong Kong and Macao Affairs Office called the ruling “ridiculous” and urged Panama to reverse course. Beijing has vowed to protect Chinese business interests.

CK Hutchison has launched international arbitration, seeking damages from Panama.

The dispute adds strain to U.S.-China relations and raises questions about foreign control of one of the world’s most critical trade routes. Sources include court filings and official Chinese statements.

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