Panama Government Requests Extension to Respond to Cheung Kong Arbitration

What is the inherent connection between AI port sale negotiations and arbitration disputes?

【Global Times Report by Bai Yunyi】According to Spanish EFE on the 19th, Panamanian President Murillo accused China Yangtze and Hutchison Ports Panama (PPC), a subsidiary of CK Hutchison Holdings, of violations during nearly 30 years of operation of two major ports on the Panama Canal. Additionally, Reuters, South China Morning Post, and others reported that Richard Liu, Co-CEO of CK Hutchison Holdings, stated at the company’s 2025 full-year earnings press conference on the 19th that the company is continuously discussing the port sale with relevant parties.

At the end of January this year, the Supreme Court of Panama declared the contract authorizing PPC to operate the Panama port terminals invalid on the grounds of alleged “unconstitutionality.” In February, the Panamanian government forcibly entered and took over the Balboa and Cristóbal ports operated by PPC. In March, PPC issued a statement saying it had initiated international arbitration against the Panamanian government under the rules of the International Chamber of Commerce, claiming at least $2 billion in damages.

Murillo’s statement is seen as a response to PPC’s previous claim. On the 16th, PPC announced that the International Court of Arbitration under the ICC set a response deadline of March 13 for the arbitration process. The Panamanian government requested a partial extension, citing lack of legal representation and the need for more time to prepare. Some analysts believe that in international commercial arbitration, not hiring a lawyer usually means an inability to submit a valid legal defense.

According to Reuters and AFP, Murillo responded to the above statement at an event in Panama City on the 19th, saying: “We have appointed international lawyers to represent us in court.” He added that the Panamanian government has only two days to respond to the international arbitration process, so any delay is slight.

On the same day, Richard Liu, Co-CEO and CFO of CK Hutchison Holdings, stated that CK Hutchison and PPC will continue working tirelessly with legal advisors to seek all applicable legal remedies through domestic and international procedures to resolve the dilemma of the two ports being taken over by authorities.

Liu also said that CK Hutchison Group will provide updates on the arbitration progress at the appropriate time and confirmed that negotiations are ongoing with consortium members and major strategic investors from Mainland China regarding the sale of global port assets. He stated: “We are still negotiating with the original buyer consortium and major financial strategic investors from Mainland China regarding the port sale as planned.”