Hong Kong conglomerate CK Hutchison announced Thursday that it is pursuing arbitration seeking over $1.5 billion in damages from the Republic of Panama. The company says Panama’s February seizure of the Balboa and Cristóbal ports—key terminals at each end of the Panama Canal—violated an investment‑protection treaty.

Background on the ports and the dispute

Panama’s Supreme Court ruled the concession held by CK Hutchison’s subsidiary, Panama Ports Company, to operate the two ports unconstitutional, prompting the government to take control. The ports have been caught in broader U.S.–China tensions, especially after former President Donald Trump returned to the White House and accused China of influencing canal operations.

Legal actions and previous deals

CK Hutchison, owned by the family of Hong Kong’s wealthiest businessman Li Ka‑shing, previously announced a $23 billion deal to sell its global ports business—including the Panama assets—to a consortium led by U.S. investment firm BlackRock. That transaction stalled amid geopolitical friction and legal challenges.

In March, Panama Ports Company filed a separate claim for at least $2 billion, arguing the takeover was unlawful under international arbitration rules. The new filing by CK Hutchison focuses specifically on treaty rights, distinct from the earlier contract‑rights claims.

Related arbitration efforts

Earlier in April, the subsidiary also began arbitration against Danish shipping group Maersk after Maersk assumed some of its Panama operations. Maersk stated it did not believe it was liable for the claims.

The dispute underscores how international trade routes and strategic assets can become flashpoints in U.S.–China competition, affecting multinational corporations and the legal frameworks that protect foreign investment.

Original reporting: KTBS 3 (Shreveport) — read the source article.