Overview
- The Jan. 29 Supreme Court ruling declared PPC’s 1997 concessions and their 2021 renewals unconstitutional, following audits that alleged irregularities and large financial losses.
- Beijing condemned the decision as legally unfounded, with the Hong Kong and Macau Affairs Office warning Panama could face heavy political and economic costs as the Foreign Ministry vowed to protect Chinese firms.
- Panama selected APM Terminals, part of A.P. Moller–Maersk, to assume temporary oversight to maintain uninterrupted operations, while PPC continues day-to-day management until the handover.
- U.S. officials praised the judgment as a win for the rule of law and a setback for Chinese influence near the canal, contrasting sharply with China’s denunciations.
- Legal experts say CK Hutchison has little room to appeal domestically and would confront sovereign-immunity and jurisdictional hurdles if seeking arbitration or actions against Panamanian assets abroad, complicating its planned sale of 43 ports to a BlackRock–MSC-led consortium.