Panama’s top court has ruled unconstitutional the contract allowing Hong Kong–based CK Hutchison Holdings Ltd. to operate two major ports at the Panama Canal, a decision that could rapidly shift control of strategic infrastructure at the heart of global trade.

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The ruling was announced late Thursday in a brief post by the court and immediately cast doubt over CK Hutchison’s long-standing concession at the Balboa and Cristóbal ports. Shares of the company fell as much as 5.7% in Hong Kong trading on Friday.

Panama President José Raúl Mulino said the government is in talks with APM Terminals, a unit of Denmark’s AP Moller-Maersk, to temporarily run the ports once legal proceedings conclude. Until then, CK Hutchison’s local subsidiary, Panama Ports Company, will continue operations.

Mulino said any permanent operator would be selected through an open bidding process designed to protect Panama’s national interests. He also instructed the Maritime Authority to meet with Panama Ports Company to ensure continuity and cooperation during the transition.

Panama Ports Company said it has not been formally notified of the ruling and warned that the decision conflicts with the legal framework governing its operations. The company said it is evaluating its legal options and called for coordination to avoid disruption at the ports.

China’s Foreign Ministry responded sharply, saying Beijing will take “all necessary measures” to protect the lawful rights and interests of Chinese companies affected by the ruling.

The ports have long been a flashpoint in U.S.–China tensions. Former U.S. President Donald Trump has repeatedly criticized Chinese involvement in Panama Canal–related infrastructure, arguing it threatens U.S. strategic interests. Panama’s government has maintained that the canal remains fully under national sovereignty.

CK Hutchison has operated the ports since 1997, with the concession extended in 2021. The legal challenge was filed last year by Panama’s comptroller, who alleged the extension bypassed required approvals and cost the state more than $1 billion in lost revenue.

The company cannot appeal the ruling but may seek clarification from the court or pursue international arbitration. People familiar with the matter said Panama Ports Company is expected to remain in control of the facilities while those legal steps are addressed, a process that could take several weeks.

The decision also complicates CK Hutchison’s plan to sell its global ports business, including the Panama assets, to a consortium led by Terminal Investment Ltd. and U.S. investment firm BlackRock. The sale has been closely watched by Washington and Beijing amid rising scrutiny of foreign ownership of strategic infrastructure.

Analysts said the ruling underscores a broader trend of governments reasserting control over ports and logistics hubs as geopolitical tensions intensify.