China’s Influence in Panama Weakens as Court Cancels Hong Kong Company’s Canal Contracts

The court ruling is a setback for Beijing’s regional strategy.

Aerial view of the Bridge of the Americas at the Pacific entrance of the Panama Canal, located next to the port of Balboa in Panama City, Panama, on Jan. 30, 2026. Martin Bernetti/AFP via Getty Images

The Panama Supreme Court’s decision to invalidate Hong Kong-based CK Hutchison’s contract to operate the ports at both ends of the Panama Canal has weakened Beijing’s control over the key waterway, but the process may drag out as the Chinese regime fights to maintain its influence in the region, according to analysts.

Panama’s supreme court ruled on Jan. 29 that the concession held by Panama Ports Co., a subsidiary of CK Hutchison Holdings, is unconstitutional.