Panama’s Supreme Court just booted Chinese-linked CK Hutchison from controlling critical Panama Canal ports, handing President Trump a major strategic victory against Beijing’s grip on this vital U.S. asset.
Story Highlights
- Panama’s Supreme Court ruled CK Hutchison’s port contracts unconstitutional on February 2, 2026, ending Chinese influence over Balboa and Cristobal ports.
- President Trump’s pressure since 2025 forced this shift, aligning with his vow to reclaim the canal from China.
- Danish firm A.P. Moller-Maersk takes over operations immediately, ensuring continuity without Beijing’s chokehold.
- U.S. Secretary of State Marco Rubio hailed the decision as encouraging, calling Chinese control a direct threat to American interests.
- Audits exposed $1.2 billion in losses from CK Hutchison’s irregularities, vindicating Panama’s sovereignty move.
Court Ruling Ends Chinese Port Dominance
Panama’s Supreme Court declared contracts granting Hong Kong-based CK Hutchison Holdings control of Balboa and Cristobal ports unconstitutional on February 2, 2026. The decision stemmed from government audits revealing unauthorized “ghost” concessions since 2015 and a controversial 25-year extension in 2021. These irregularities cost Panama $300 million since 2021 and $1.2 billion overall. President Jose Raul Mulino supported the ruling, prioritizing national sovereignty over foreign influence tied to Beijing.
Trump Administration’s Strategic Push Pays Off
President Trump vowed in his 2025 inaugural address to take back the Panama Canal from Chinese operators. In April 2025, he directed Secretary of State Marco Rubio to solidify American control and ensure free passage for U.S. ships. Rubio praised the court decision on February 3, 2026, stating the U.S. is encouraged by Panama voiding concessions to China. This aligns with Pentagon views of the canal as a threatened key strategic asset under renewed Monroe Doctrine enforcement.
CK Hutchison, with decades-long ties to the Chinese government, tried selling its stake to a BlackRock-led group, but Beijing blocked the deal. Rep. John Moolenaar called the ruling a win for America, Panama, and allies, insisting ports go to operators sharing common values. China’s Foreign Ministry condemned the move, vowing to protect its companies’ rights.
Transition to Western Operator Secures Continuity
President Mulino announced A.P. Moller-Maersk, a Danish company, will manage the ports during the transition, assuring uninterrupted operations. This swift handoff prevents disruptions to global trade flows through the canal, vital for U.S. military and commercial interests. Marine Corps Gen. Francis Donovan, U.S. Southern Command’s next commander, emphasized the need for security review of this key asset. Previous leaders warned Chinese facilities could convert to military use in conflict.
Port workers face potential employment shifts, with Panama Ports Co. claiming threats to thousands of families. Government reassurances stress jobs and trade remain unaffected. The ruling sets a precedent, mirroring Australia’s push to reclaim Chinese-leased Port Darwin.
Long-Term Geopolitical Wins for U.S. Interests
The decision shifts control from Chinese influence to Western operators, bolstering U.S. strategic position in the Western Hemisphere. It counters Beijing’s global port grabs, protecting chokepoints critical to American security and economy. Conservative values of limited foreign overreach and strong national defense shine through this victory. Limited details exist on full transition timelines or Maersk’s contract terms, but core facts confirm a cleaner break from Chinese dominance.
Sources:
Washington Times: Panama court voids Chinese company’s control of critical canal ports
South China Morning Post: US hails Panama high court ruling against CK Hutchison’s ports concession
