After Panama's Supreme Court recently ruled that the concession contract under which CK Hutchison Holdings operates two ports along the Panama Canal was "unconstitutional", the Hong Kong Special Administrative Region (HKSAR) government on Friday expressed strong dissatisfaction and firm opposition to the ruling.

A government spokesperson said the HKSAR government strongly opposes any foreign government's use of coercion, pressure or other unreasonable means in international economic and trade relations, stressing that such actions seriously undermine the lawful business operations and legitimate rights of Hong Kong enterprises in the locality.

Such moves will also severely damage the local business environment, inevitably shake investor confidence, and harm bilateral relations as well as the long-term economic development of both sides, the spokesperson said.

The HKSAR government reiterated that the Panamanian government should respect the spirit of contracts, provide a fair and just business environment for enterprises operating lawfully in the country, and ensure that their legitimate rights and interests are not subject to interference.

Hong Kong enterprises operating and investing in Panama should be accorded fair and reasonable treatment and protection, the spokesperson said, adding that, in light of the current situation in Panama, Hong Kong enterprises should carefully assess their existing and future investments in the country.

When responding to the ruling on Friday, Chinese Foreign Ministry spokesperson Guo Jiakun said that China will take all necessary measures to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises.

CK Hutchison Holdings said in a statement issued on Thursday local time in Panama that while the company's Panama Ports Company has not yet received formal notification of the ruling, it considers the decision to be in violation of the relevant legal framework and the laws under which the concession contract was approved. The ruling breaches principles of good faith and represents a repudiation of contractual commitments, according to the statement.

The concession contract has governed the company's operation of the Balboa and Cristóbal container terminals for nearly 30 years. During the period, the company and its investors have invested more than US$1.8 billion in Panama's infrastructure, technology and talent development - several times the amount invested by any other port operator in the country.

These investments have created thousands of direct and indirect jobs, helped establish Panama as a globally recognized port and logistics hub, attracted leading shipping lines from around the world, and delivered benefits across the country.

The company said the ruling represents the latest in a series of unjustified attacks by the Panamanian government over the past year against Panama Ports Company and its investors. "The decision runs directly counter to previous rulings by Panama's Supreme Court in cases involving concession contracts similar to that of Panama Ports Company," read the statement.

"The concession contract was awarded through an international tender process that was open and transparent," the company said, adding that since then, it has acted in good faith and complied with its contractual and legal obligations, including fully cooperating with audits conducted by the local authorities.

Based on the information currently available, the statement said, the new ruling lacks a legal basis. "It not only undermines the company and its concession contract, but also threatens the livelihoods and stability of thousands of Panamanian families who depend directly or indirectly on port operations, while damaging the country's rule of law and legal certainty," per the statement.

In response to recent developments, Panama Ports Company and its investors reserve all rights to pursue legal remedies, including through domestic and international legal proceedings, the statement said.