Summary
Panama’s Supreme Court ruled that lease contracts for two ports at the Panama Canal held by a Hong Kong-based company are unconstitutional. The decision supports President Donald Trump's efforts to reduce Chinese influence in Latin America. The ruling affects a major sale involving the company’s port assets and brings U.S. interests back into focus.
Key Facts
- Panama’s Supreme Court declared contracts for two Panama Canal ports unconstitutional.
- The ports’ leases were held by a Hong Kong-based company, CK Hutchison.
- President Donald Trump aims to limit Chinese influence in Latin America.
- Trump claims the Panama Canal was under Chinese control, despite denials from China and Panama.
- A 25-year lease extension granted to CK Hutchison in 2021 was contested for irregularities.
- The court ruling may impact a planned $22.8 billion sale of CK Hutchison’s port shares globally.
- The sale includes a U.S.-led consortium with companies like BlackRock.
- Chinese media criticized the sale, calling it harmful to China’s interests.
