Panama's government is considering canceling its contract with Hutchison Ports PPC, a subsidiary of billionaire Li Ka-shing's CK Hutchison Holdings Ltd., which operates ports near the Panama Canal. The decision is seen as a potential concession to address concerns over China's influence in the region, raised by former U.S. President Donald Trump.
Sources familiar with the matter told Bloomberg that the government of President Jose Raul Mulino is proceeding cautiously to avoid legal disputes and ensure due process. While no final decision has been made, Panama's presidential office and Hutchison Ports did not immediately respond to requests for comment.
If the contract cancellation goes through, it would align with Trump's stance that China holds excessive control over the canal and his suggestion that the U.S. has not ruled out using force to counter that influence. Hutchison Ports currently operates two of the five ports adjacent to the canal, one on each side.