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Panama’s government on Monday began an audit of a Hong Kong company that operates ports at both ends of the canal, after US President Donald Trump warned he wanted to restore the waterway because of alleged Chinese influence.
In his inaugural address on Monday, Trump reiterated criticisms he has made in recent weeks about the Panama Canal, which covers about 3 percent of global maritime trade each year.
In response, PanamaThe Comptroller General’s office posted a video on social media platform X of about 10 men and women in suits getting off a bus to Hong Kong-based Hutchison Ports’ local offices to begin the audit, in a move seen as a nod to Trump.
“Our auditors arrived today [the company] begin an exhaustive audit aimed at guaranteeing the efficient and transparent use of public resources,” said the Comptroller General’s office at X.
Hutchison Ports, the port arm of the Hong Kong-listed conglomerate CK Hutchison Holdingsoperates 53 ports in 24 countries, including the UK, Germany and Hong Kong.
It was first awarded concessions to operate two ports, one at each end of the channel, in 1997, the year Hong Kong was returned to Chinese rule by the United Kingdom. The concessions were renewed in 2021.
Controlled by the Li Ka-shing family — one of Asia’s richest — CK Hutchison Holdings also manages a vast portfolio of global infrastructure including Northumbrian Water in the United Kingdom and Australian Gas Networks.
China does not control the canal, but some officials in Washington are increasingly concerned about the presence of Chinese companies in the area. Hong Kong’s government has become closer to China after cracking down on pro-democracy protests in 2019 and introducing tough national security laws.
CK Hutchison did not immediately respond to a request for comment on the Panama audit.
The US oversaw construction of the canal, which opened in 1914, but returned full control to the Central American nation in 1999. Trump called the move a “mistake” and condemned the high fees.
Tolls for crossing the canal, which uses fresh water to operate its locks, have since risen significantly great drought in 2023 it led to restrictions and subsequent changes in the way seats were allocated.
“We’ve been treated very badly because of this stupid gift that should never have been made,” Trump said. “We didn’t give it to China, we gave it to Panama and we’re taking it back.”
Panama has long been one of the US’s closest allies in Central America and has tried to stop migration to the US with its the notorious Darién Gap. The country cut ties with Taiwan to recognize China during Trump’s first term in 2017.
President of Panama José Raúl Mulino — law and order conservative – released a strongly worded statement on Monday in which he “totally rejects” Trump’s words and said the canal will remain Panamanian.
He added that no country interferes in the management of the canal and that dialogue is the best way to resolve the issues raised by Trump. He also disagreed with Trump’s assessment that the US is returning the Panama Canal.
“The channel was not given by anyone, it is the result of a generational struggle that culminated in 1999,” he wrote on X.
