HONG KONG (AP) 鈥� Hong Kong conglomerate CK Hutchison said Thursday it was seeking more than $1.5 billion in damages from Panama after caught in the crosshairs of U.S.-China tensions.
CK Hutchison said in the statement that it had begun new arbitration proceedings against Panama and alleged that the Central American country had breached an investment protection treaty through 鈥渟overeign acts that targeted a decades-old ports concession鈥� in a 鈥渟tate attack campaign鈥� on the company鈥檚 assets in the Central American country.
Panama鈥檚 government in February seized the Balboa and Cristobal ports, located on each end of the Panama Canal, after its Supreme Court that a concession held by CK Hutchison鈥檚 subsidiary to run the two ports was unconstitutional.
The two ports at each end of the Panama Canal became part of since Donald Trump鈥檚 return to the White House last year after he alleged China
The Panama Canal is managed and owned by Panama. But CK Hutchison鈥檚 subsidiary Panama Ports Company had run the two ports on the canal from 1997 and had renewed its concession for 25 years in 2021.
Beijing and Hong Kong at Panama over its takeover of the ports.
CK Hutchison, controlled by the family of Hong Kong鈥檚 richest man Li Ka-shing, last year announced an initial $23 billion deal to sell its global ports business, including the two Panama ports, to a consortium involving U.S. investment firm BlackRock. But under geopolitical tensions and legal challenges among China, the U.S. and Panama.
In March, Panama Ports Company had separately in compensation from Panama over its takeover of the ports which it said was unlawful under . CK Hutchison said the actions were making progress.
CK Hutchison added that Thursday’s new proceedings were focused on its treaty rights, which were distinct from Panama Ports Company鈥檚 contract rights in the earlier arbitration proceedings.
In April, the subsidiary also launched arbitration proceedings against Danish shipping and logistics group Maersk after it took over some of its port operations in Panama. Maersk that it did not believe it was liable for the claims.
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