Panama Considers Withdrawing from Port Deal with Hong Kong Firm After Trump's Canal Offensive

A subsidiary of CK Hutchison Holdings -- owned by Hong Kong billionaire Li Ka-shing -- manages two of the canal's five ports, an arrangement in place since 1997 via a concession from the Panama government. (Credit: AFP)

Panama is considering canceling its contract with Hutchison Ports PPC, a Hong Kong-based firm that President Donald Trump and Secretary of State Marco Rubio have labeled a national security threat due to its expanding presence in the Panama Canal amid rising tensions between the U.S. and China.

While no decision has been made, anonymous sources told Bloomberg that the government of Panama is weighing the possibility of canceling the contracts. President José Raúl Mulino has not yet commented on the matter.