Panama's Supreme Court has cancelled contracts allowing Hong Kong-based CK Hutchison to operate two container ports on the Panama Canal. The court ruled that laws allowing these contracts were "unconstitutional." CK Hutchison operates the Balbao and Cristobal ports through its subsidiary Panama Ports Company (PPC), managing them since the 1990s. PPC dismissed the ruling, claiming it "lacks legal basis" and warned it threatens thousands of Panamanians' jobs. PPC has invested more than $1.8 billion in the ports since 1997. The decision could impact CK Hutchison’s plan to sell its port interests to a group led by US investment firm BlackRock and shipping group MSC in a deal worth $22.8 billion. This sale was seen as reducing political risks and easing US-China tensions over strategic assets. US President Donald Trump had claimed China was "operating the Panama Canal," a statement strongly denied by Panama’s leaders, who maintain full control of the canal. China’s foreign ministry said it will protect Chinese companies’ rights, while Hong Kong’s government condemned the ruling. CK Hutchison is owned by Hong Kong billionaire Li Ka-shing, not the Chinese government. Yet, growing Chinese influence in Hong Kong has changed international views of the company’s global assets. The Panama Canal is vital to global trade, with about 14,000 ships using it yearly. It handles 5% of the world’s maritime trade volume. China is the second-largest user, accounting for 21.4% of cargo transit from October 2023 to September 2024 after the US. After the news, CK Hutchison’s shares dropped 4.6%, pulling down Hong Kong’s Hang Seng Index by over 2%, showing investor worries over political risks.