CK Hutchison has launched international arbitration proceedings against Panama, escalating a dispute over two strategically-important ports that have become caught up in U.S.-China tensions. The Hong Kong conglomerate said it is seeking more than $1.5 billion in damages for the "destruction of the company's investments" in the country.

Hutchison alleged that Panama breached an investment protection treaty through a series of measures taken between 2025 and 2026, which it said resulted in the "destruction" of the concession contract for the ports of Balboa and Cristobal, located on either end of the Panama Canal, and Panama taking over these terminals.

Efforts to reach a resolution before initiating arbitration were unsuccessful, the company added. The dispute centers on terminals critical to global shipping routes, with the arbitration marking a significant escalation in commercial tensions involving one of the world's most vital waterways.