Ports row prompts Hong Kong investors to reassess stakes in Panama: John Lee

Hong Kong investors are reviewing their stakes in Panama amid a dispute over a concession held by a subsidiary of CK Hutchison to operate two ports in the country, the city’s leader has said, pledging to work with Beijing to push back. Chief Executive John Lee Ka-chiu on Tuesday also urged Panamanian authorities to ensure “fair and reasonable” treatment for Hong Kong firms operating in the country. “The incident has undermined investors’ confidence in Panama’s business environment, and [they] will review current and future investment in the country,” he said before a weekly meeting of the city’s top decision-making body, the Executive Council. “Hong Kong enterprises’ operation and investment in Panama should be entitled to fair and reasonable treatment and protection.” Lee’s remarks came days after commerce minister Algernon Yau Ying-wah summoned the Panamanian envoy in Hong Kong to convey the government’s condemnation of a court ruling that invalidated the concession to operate two ports at opposite ends of the Panama Canal. The judgment, handed down by the Supreme Court of Justice last month, declared that the contracts allowing Panama Ports Company (PPC), a subsidiary of the conglomerate led by billionaire Li Ka-shing, to operate the Balboa and Cristobal terminals were unconstitutional. Panamanian President Jose Raul Mulino reportedly vowed that his country would “never again” grant a concession contract to operate the ports to a single company. In response, PPC has taken the Panamanian state to arbitration, seeking “extensive damages”. Beijing, meanwhile, warned that Panama would “inevitably pay a hefty political and economic price” if it persisted in its course of action and remained obstinate. Lee said the city opposes “any foreign authorities’ use of coercion, pressure, or other unjust political measures in international commerce and trade. “The Ministry of Foreign Affairs has also made clear that China will take all necessary measures to resolutely safeguard the justified rights of Chinese enterprises. The Hong Kong government will fully support and coordinate with the country’s efforts.” The judgment by Panama’s top court followed an audit into PPC’s operations that began in January 2025. It was launched on the same day Donald Trump, who has repeatedly vowed to “take back” the strategic waterway, returned to the US presidency. The audit’s findings alleged that the concession granted to PPC ran counter to national interests and accused former officials of favouring private interests over those of the state. PPC has managed the ports since 1997 and renewed its contract for another 25 years in 2021.