Panama's comptroller general brought lawsuits to try and remove a major Chinese firm's control over both ends of the Panama Canal, a move that could threaten China's decades-long strategic presence in one of the world’s most critical maritime passages, according to Nikkei Asia.

Anel Flores, who serves as Panama’s chief financial supervisory authority, confirmed on Wednesday that he had filed two lawsuits in the country’s Supreme Court, questioning the legitimacy of a 25-year concession extension approved in 2021 for CK Hutchison, a Hong Kong-based company led by Chinese billionaire Li Ka-Shing. As reported by Nikkei Asia, Flores described the deal as "abusive to the country's interests" and claimed that the renewal process was marked by "irregularities."

The ports under dispute, Cristobal on the Caribbean side of the canal and Balboa on the Pacific, were operated by Panama Ports Company, a subsidiary of Hutchison Port Holdings. These ports were not only vital for Panama’s trade but also carried global strategic weight, making their control a sensitive geopolitical matter.

Flores pursued legal action during a time of heightened uncertainty. Earlier this year, CK Hutchison tried to sell its 90 percent stake in Panama Ports and its operational control over multiple ports in 23 countries to a consortium led by BlackRock and MSC, a leading European shipping company. According to Nikkei Asia, this move was intended to reduce scrutiny from the United States, especially during the Trump administration, which had pledged to "take back" influence over the canal.

However, the proposed sale met strong opposition from Beijing, which launched a campaign through state-run media and initiated an antitrust investigation. Negotiations with Western buyers had come to a halt, and CK Hutchison was now searching for a "major" Chinese investor to join the consortium, further intensifying concerns about China’s expanding role in key global infrastructure, Nikkei Asia reported.

"This is about Panamanian sovereignty," Flores asserted, questioning why foreign powers should decide the fate of national assets. As Panama continued to review the legal foundation of the agreement, the dispute brought renewed global attention to China’s vast network of port holdings, which had been built through controversial agreements and rising international concern.