Panama ousts Hong Kong operator, enabling canal port takeover welcomed by US

Name: Why the US is worried about China’s growing influence in South America
Uploaded: 2026-02-23T16:45:03.000Z
Duration: 10 min 37 s
Description: Why the US is worried about China’s growing influence in South America

White House says Panama’s move to assert sovereignty over Balboa and Cristobal aligns with Donald Trump’s vision for the canal

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The port of Balboa, managed by Hong Kong-based CK Hutchison Holdings, at the entrance to the Panama Canal in Panama City. On Monday, Panama took control of the ports in Balboa and Cristobal. Photo: AFP

Igor Patrickin SantiagoandTeresa Elena Frontadoin Washington

Published: 12:45am, 24 Feb 2026Updated: 9:43am, 24 Feb 2026

Panama on Monday took control of two ports at the Atlantic and Pacific entrances of the Panama Canal after a Supreme Court ruling voided the concession of their Hong Kong-based operator, a move Washington officials said was “in line with President Donald Trump’s drive to curb Chinese influence” over the strategic waterway.

A decree published in the official gazette authorises the Panama Maritime Authority to occupy and run the ports of Balboa and Cristobal for “reasons of urgent social interest”, and to take possession of movable assets needed to keep them operating, including cranes, vehicles, computer systems and software.

The action followed the formal publication of the court’s January decision declaring unconstitutional the law approving the concession held by Panama Ports Company, a subsidiary of Hong Kong conglomerate CK Hutchison. Under Panamanian law, the ruling became final once it appeared in the gazette, clearing the way for immediate state intervention.

Alberto Aleman Zubieta, who heads the technical team overseeing the transition, said the Panama Maritime Authority (AMP) had taken possession of both ports by decree to ensure uninterrupted operations once the ruling became final upon publication.

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Why the US is worried about China’s growing influence in South America

“Two separate contracts are being presented to the Board of Directors of the AMP, one for the Port of Balboa and one for the Port of Cristobal, instead of a single contract for both ports,” he told a press conference.

Panama ousts Hong Kong operator, enabling canal port takeover welcomed by US

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}White House says Panama’s move to assert sovereignty over Balboa and Cristobal aligns with Donald Trump’s vision for the canal

White House says Panama’s move to assert sovereignty over Balboa and Cristobal aligns with Donald Trump’s vision for the canal