Beijing, Hong Kong slam Panama court ruling on CK Hutchison ports concession
Beijing has vowed to take all necessary measures to safeguard the rights of Chinese enterprises after Panama’s Supreme Court ruled that a contract held by a subsidiary of Hong Kong-based CK Hutchison Holdings to operate two ports at the country’s canal was unconstitutional. The Hong Kong government on Friday also slammed the ruling, which could…
The Hong Kong government on Friday also slammed the ruling, which could leave the Li Ka-shing-controlled CK Hutchison empire at risk of losing its right to operate two major ports at either end of the strategic Panama Canal.
The court’s decision was announced in a statement posted on the official social media account of the Panamanian judiciary on Thursday local time.
The court said the concession contract for the development, construction, operation, administration and management of the Balboa and Cristobal ports between the state and the Panama Ports Company (PPC), a CK Hutchison subsidiary, was unconstitutional.
It added that the decision was reached “following extensive deliberation and discussion”.
CK Hutchison holds a 90 per cent stake in PPC, which had a 25-year concession to operate the Balboa and Cristobal ports that was renewed in 2021.
Foreign ministry spokesman Guo Jiakun said Beijing would take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
