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Panama’s Top Court Voids CK Hutchison Canal Port Concessions

Legal analysts say CK Hutchison faces scant recourse, with appeals foreclosed, cross-border claims uncertain.

Overview

  • Experts say no ordinary appeals are available in Panama and any bid to pursue the case at the International Court of Justice would require action by Beijing.
  • Advisers note a possible strategy of suing in neutral jurisdictions to target Panamanian assets, though sovereign-immunity defenses would likely pose major hurdles.
  • China’s Foreign Ministry condemned the rulings and pledged to take necessary measures to safeguard the rights and interests of Chinese companies.
  • Pro-Beijing newspaper Ta Kung Pao denounced the decision as politically driven, urged Hong Kong firms to avoid new investment in Panama, and called for compensation.
  • The voided terminals were included in CK Hutchison’s proposed sale of 43 ports to a BlackRockMSC consortium with a later invitation to COSCO, and the company’s shares fell after the ruling.