Panama’s government began an audit on Monday of Hutchison Ports, a Hong Kong-based company operating ports at both ends of the Panama Canal, following comments by former US President Donald Trump suggesting that the canal should be “taken back” due to alleged Chinese influence. The Financial Times reported that this move was widely interpreted as a response to Trump’s recent criticism of Panama’s management of the canal.
The Office of the Comptroller General in Panama shared footage on X (formerly Twitter) showing auditors arriving at Hutchison Ports’ local offices. “Today our auditors arrived at [the company] to start an exhaustive audit aimed at guaranteeing efficient and transparent use of public resources,” the office said.
Hutchison Ports, part of the Hong Kong-listed conglomerate CK Hutchison Holdings, operates 53 ports in 24 countries and has held concessions for Panama’s ports since 1997, the same year Hong Kong was handed back to China. These concessions were renewed in 2021. CK Hutchison, controlled by the family of billionaire Li Ka-shing, also manages global infrastructure assets such as Northumbrian Water in the UK and Australian Gas Networks.
While China does not control the canal, concerns in Washington have grown over Chinese companies’ presence in the region. Hong Kong’s closer alignment with Beijing, particularly after the 2019 crackdown on pro-democracy protests and the introduction of a national security law, has heightened geopolitical tensions.
Trump has been vocal in his criticism of the US decision to transfer control of the canal to Panama in 1999, calling it a “mistake.” During his inauguration speech on Monday, he reiterated these views, decrying high fees imposed on ships and suggesting that the US had been “treated very badly” since relinquishing control. “We didn’t give it to China, we gave it to Panama, and we’re taking it back,” Trump declared.
The Financial Times noted that Panama’s President José Raúl Mulino responded firmly to Trump’s comments, publishing a statement rejecting any interference in the canal’s administration. Mulino emphasized that the canal’s transfer to Panamanian control in 1999 was the culmination of a generational struggle, not a gift. “The canal wasn’t given by anyone; it was the result of a generational fight,” he wrote on X, adding that dialogue, not confrontation, was the path to resolving any issues.
The Panama Canal, which handles approximately 3% of global seaborne trade annually, has faced operational challenges, including a significant drought in 2023 that led to changes in fee structures and slot assignments. Hutchison Ports has not yet commented on the audit, as reported by the Financial Times.
