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Panama court rules Chinese control of canal ports unconstitutional

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January 31, 2026

Lawsuit was brought before court in 2025 as US threatened to seize control of strategic waterway —Trump’s first step under plan to reassert hegemony over Western hemisphere

(Al Jazeera) Panama’s Supreme Court has ruled that the contracts under which a Chinese company operates ports on the Panama Canal are unconstitutional.

The decision regarding the facilities run by Hong Kong-based CK Hutchison was announced late on Thursday. It comes one year after United States President Donald Trump threatened to seize control of the crucial passageway, claiming it was effectively under Chinese control and therefore a security threat.

The court ruled that the laws and acts underpinning the concession contracts between the state and the Panama Ports Company (PPC) for the development, construction, operation and management of the two port terminals violated the country’s constitution.

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