Overview

• A Panamanian audit confirmed CK Hutchison's subsidiary, Panama Ports, breached its contract by failing to pay $1.2 billion in fees, prompting legal action by Panamanian authorities.
• U.S. Defense Secretary Pete Hegseth met with Panamanian President José Raúl Mulino, pledging enhanced U.S.-Panama security cooperation to protect the canal’s integrity.
• Hegseth emphasized that the U.S. would not allow China to jeopardize the Panama Canal, which handles over 40% of U.S. container traffic annually.
• CK Hutchison's pending $19 billion sale of its port operations to a BlackRock-led consortium is under review by Chinese regulators, delaying the transfer of control.
• The Chinese government criticized U.S. actions as 'blackmail,' while Panama continues to assert its sovereign control over the canal and its operations.