Panama court hands Trump a win against China over canal ports control

The lease contracts for ports at opposite ends of the Panama Canal held by a subsidiary of Hong Kong-based CK Hutchison are unconstitutional, Panama’s Supreme Court ruled late on Thursday.

The decision is a win for President Donald Trump, who has sought to curb Chinese influence in Latin America as the White House pivots toward the “Donroe Doctrine,” a national security outlook of maintaining U.S. primacy in the Western Hemisphere including Latin America, which the United States has historically viewed as its doorstep.

Since returning to office one year ago, Trump has asserted that the Panama Canal has fallen under Chinese control, a claim rejected by both Beijing and Panama City. In July, Panama’s comptroller filed lawsuits seeking to annul the 25-year extension granted in 2021 to CK Hutchison for its Balboa and Cristóbal port concessions, citing alleged irregularities and arguing the deal was harmful to national interests.

The high court ruling further complicates CK Hutchison’s efforts to complete a roughly $22.8 billion sale of its majority shares in more than 40 ports worldwide. In March last year, the company reached an agreement to sell stakes in the facilities to a U.S.-led consortium that includes asset management giant BlackRock.

The deal triggered a sharp backlash from Chinese state media, which labeled it a betrayal of national interests, and has remained in limbo pending approval by Beijing.

This is a breaking news story. Updates to follow.