CK Hutchison Sues Panama Over Canal Port Contract Annulment

• Hong Kong-based CK Hutchison has initiated international arbitration against Panama after its top court annulled a concession for operating Panama Canal ports.
• The Supreme Court of Panama invalidated Hutchison's contract, citing it as "unconstitutional" and biased, following threats from US President Donald Trump regarding Chinese control.
• Hutchison's subsidiary, Panama Ports Company (PPC), claims the arbitration is due to a campaign by the Panamanian state causing "serious damages."
• The US welcomed the ruling, while China vowed to protect its companies' rights; Panama has denied Chinese control over the vital waterway.
• The annulment occurred amidst Hutchison's stalled $22.8 billion deal to sell its stake in the terminals to a BlackRock-led group, a deal China had warned against.