Panama Court Voids Chinese Company’s control of critical canal ports

(LibertyInsiderNews.com) – Panama’s Supreme Court just booted Chinese-linked CK Hutchison from controlling critical Panama Canal ports, handing President Trump a major strategic victory against Beijing’s grip on this vital U.S. asset.

Story Highlights

Panama’s Supreme Court ruled CK Hutchison’s port contracts unconstitutional on February 2, 2026, ending Chinese influence over Balboa and Cristobal ports.
President Trump vowed in 2025 to reclaim the canal from China; this ruling advances that America First agenda.
Danish firm A.P. Moller-Maersk steps in as transition operator, ensuring continuity while shifting control to Western allies.
U.S. Secretary of State Marco Rubio hailed the decision as encouraging, calling Chinese port control a direct threat to national security.
Government audits exposed $1.2 billion in losses from CK Hutchison’s irregularities, justifying Panama’s decisive action.

Court Ruling Ends Chinese Port Dominance

Panama’s Supreme Court declared contracts granting Hong Kong-based CK Hutchison Holdings control of Balboa and Cristobal ports unconstitutional on February 2, 2026. The decision stemmed from government audit findings revealing unauthorized “ghost” concessions since 2015 and a controversial 25-year extension in 2021. These irregularities cost Panama $300 million since 2021 and $1.2 billion overall. President Jose Raul Mulino supported the ruling, prioritizing national sovereignty over foreign operators with ties to Beijing. This move removes a decades-long Chinese commercial foothold at the strategically vital canal.

Trump Administration’s Strategic Push Pays Off

President Trump declared in his 2025 inaugural address that China operated the canal and pledged to take it back. In April 2025, he directed Secretary of State Marco Rubio to solidify American control, demanding free passage for U.S. ships. On February 3, 2026, Rubio welcomed the court decision, stating the United States is encouraged by Panama’s action against Chinese concessions. Republican lawmakers, including Rep. John Moolenaar, praised it as a win for America, Panama, and allies, stressing ports should go to operators sharing common values. The Pentagon views the canal as a threatened asset under renewed Monroe Doctrine enforcement.

Transition to Western Operator Secures Continuity

President Mulino announced A.P. Moller-Maersk, a Danish company, will manage the ports during the transition, assuring uninterrupted operations. CK Hutchison criticized the ruling as legally baseless, claiming it threatens thousands of Panamanian families. China’s Foreign Ministry condemned the decision and vowed to protect its companies’ rights. Despite employment concerns, Panama’s government reassured workers that trade and jobs remain secure. This swift handover underscores Panama’s commitment to operational stability amid geopolitical realignment.

Military and Global Implications Strengthen U.S. Position

Marine Corps Gen. Francis Donovan, U.S. Southern Command’s next commander, called the canal a key strategic asset needing security review. Military leaders warn Chinese facilities could convert to military use in conflict, creating choke points. The ruling mirrors Australia’s plan to reclaim Port Darwin from Chinese firm Landbridge. Long-term, it bolsters U.S. influence in the Western Hemisphere, counters Beijing’s global port strategy, and protects trade flows critical to American commerce. CK Hutchison’s failed BlackRock sale, blocked by Beijing, highlighted China’s resistance to divestment.

Port workers face short-term uncertainties, but the shift away from Chinese control safeguards U.S. interests. This precedent may inspire other nations to scrutinize similar arrangements, aligning with conservative priorities of limited foreign overreach and strong national defense.