CK Hutchison sued Panama in international arbitration after its port deal was annulled over constitutional concerns.

After Panama's Supreme Court ruled that its subsidiary's port concession near the Panama Canal was unconstitutional due to exclusive rights and tax exemptions, CK Hutchison Holdings initiated international arbitration against the nation. The business challenges the decision, claiming it violates contractual duties, and has started legal action in Paris under ICC regulations. China harshly condemned the ruling and threatened Panama with dire repercussions, while the U.S. Concerns about Chinese influence were voiced by officials. The government of Panama claims that port operations will go on as usual in spite of the decision. Chinese regulators are scrutinizing CK Hutchison's proposed sale of its global ports to a group that includes BlackRock, which is complicated by the dispute. The outcome of the arbitration is still up in the air.