Legal Insurrection by Leslie Eastman 1/31/2026
The “Donroe Doctrine” has not only halted Beijing’s quiet expansion into the Western Hemisphere but has also reasserted America’s influence over one of the most vital trade routes in the world.I have been following developments related to the Panama Canal, especially the nation’s launch of an audit of the Panama Ports Company.
In the early days of President Donald Trump’s second term, Secretary of State Marco Rubio was clear about the terms of the treaty we have with Panama. The agreement includes the right to defend the critical waterway between the Pacific and Atlantic oceans from any threat that might interfere with its continuation of neutral service.
Within a month of this reminder, Hong Kong’s CK Hutchison Holdings sold its Panama ports to an investment group led by U.S. asset management firm BlackRock. Subsequently, the Chinese began considering the construction of a transcontinental railway in South America.
After a full year of the “Donroe Doctrine,” things are looking even worse for China in this region. Panama’s Supreme Court has unanimously annulled the concession laws and contracts that allowed a subsidiary of CK Hutchison to operate the Balboa (Pacific) and Cristóbal (Atlantic) container terminals at either end of the Panama Canal, effectively ending that company’s legal control over both ports and significantly reducing Chinese commercial influence around the canal zone.
Panama’s Supreme Court has annulled key port contracts held by a subsidiary of Hong Kong-based CK Hutchison, leaving the future ownership of some Panama Canal operations unclear and possibly upsetting its plans to sell some terminals.
Panama Ports Company (PPC), a CK Hutchison subsidiary, has held contracts since the 1990s to operate container terminals at the canal’s Pacific and Atlantic entrances, separate from the waterway’s operations.
The decision could disrupt CK Hutchison’s (0001.HK) proposed $23 billion sale of dozens of ports worldwide, including the Panamanian terminals, to a consortium led by BlackRock (BLK.N) and Mediterranean Shipping Company (MSC).
The ruling comes amid growing U.S.-China rivalry over global trade routes and marks a win for Washington. U.S. President Donald Trump has pushed to curb Chinese influence over the Panama Canal, which carries about 5% of global maritime trade.
More:
https://legalinsurrection.com/2026/01/panama-supreme-court-ends-chinese-port-control-marking-major-geopolitical-shift-in-canal-zone/
