A Panamanian court has nullified a port agreement held by a subsidiary, leading President José Raúl Mulino to guarantee that canal operations will remain unaffected.

On Thursday, the court determined that the port concession awarded to Panama Ports Company — a subsidiary of Hong Kong’s CK Hutchison Holdings — violated the constitution. According to The Associated Press, the decision was welcomed and criticized by Beijing.

“Beijing plays rough. rougher,” China analyst Gordon Chang stated in an email to Digital. “The American president has just demonstrated to the Chinese who holds authority in the Western Hemisphere.”

“President Trump, by removing Nicolas Maduro and his wife from Caracas, eliminated Chinese influence in Venezuela,” Chang continued. “With the cancellation of Hutchison’s port concessions in Panama, nations are receiving the signal that Trump is committed to pushing China out of the region and that they should align with the American president.”

On Friday, Mulino stated that port operations at both ends of the canal will proceed as the ruling is implemented, noting that Panama’s Maritime Authority will collaborate with Panama Ports Company to keep the , AP reported.

After the concession is officially ended, Mulino indicated that a local subsidiary of Danish shipping conglomerate A.P. Moller-Maersk will temporarily manage the ports while the government initiates a new tender process for a long-term concession.

The followed an audit by Panama’s comptroller that uncovered irregularities in a 25-year extension of the concession awarded in 2021, according to AP.

The decision is consistent with enduring U.S. apprehensions regarding China’s proximity to the Panama Canal.

Curtailing Beijing’s influence in the region has been a focus of the Trump administration, and Panama marked the first international destination this year for U.S. Secretary of State , AP reported.

“The is encouraged by the recent Panamanian Supreme Court’s decision to deem port concessions to China unconstitutional,” Rubio posted on X Friday.

Panama Ports Company stated it has not received official notification of the ruling and contended it has no legal foundation, cautioning that it could negatively impact thousands of Panamanian families and erode legal stability. The Hong Kong government likewise dismissed the ruling, according to AP.