Hong Kong protests after Panama takes control of key canal ports

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Hong Kong’s government protested Panama’s takeover of two key ports on the Panama Canal, after the city said the facilities—operated for decades by a Hong Kong-based company—were caught up in a legal and geopolitical dispute. The Hong Kong Commerce and Economic Development Bureau said Tuesday it lodged “stern protests” with Panama’s consulate, expressing strong opposition and dissatisfaction and adding that it would “staunchly support the legitimate rights and interests of Hong Kong corporations overseas,” according to a statement cited by the Associated Press.

Panama’s actions focused on the ports at the canal’s mouth and tail. The ports have been operated by a subsidiary of CK Hutchison since 1997, and they drew wider attention as Washington and Beijing competed for influence in the region, with U.S. President Donald Trump later accusing China of “running the Panama Canal,” the AP report said.

Panama said it took control of the two ports on Monday after the country’s Supreme Court struck down a law approving the concession contract for Panama Ports Company. The AP report said the ruling removed the legal basis for the ports’ operations and that the company is now pursuing arbitration proceedings against Panama.

China also weighed in on Tuesday through its Ministry of Foreign Affairs. A spokesperson, Mao Ning, said at a daily press briefing that “China will firmly safeguard the company’s legitimate and lawful rights and interests,” according to the AP report.

Panama said it would keep the waterway operating smoothly. The AP report said Panama’s Maritime Authority director of ports told reporters that the agency “took possession of its ports and will guarantee continuity of operations,” and said the entity’s board of directors would approve a plan for transitional operations for up to 18 months while long-term operators are selected.

In a televised message to the nation, President José Raúl Mulino said Panama’s move was not an expropriation. The AP report said Mulino added that Panama would keep control of the ports “until their real value is determined for corresponding actions,” and that “everything done was not against anyone, but in compliance with the law,” referring to challenges from the company and China’s government.

The AP report also said the ports are due to be sold as part of a deal CK Hutchison struck with a group of buyers that included Blackrock, after Trump began putting pressure on Panama to reduce Chinese influence last year.