On Friday last week, Panama’s Supreme Court delivered a ruling that declared the port operating rights held by a subsidiary of the Hong Kong-based CK Hutchison Holdings at both ends of the Panama Canal were “unconstitutional”. The decision, which nullified the legitimate business operations of a major Chinese company, has left China with no choice but to fight back to defend Chinese enterprises’ legal rights and interests.

The ruling has effectively terminated the port concessions of CK Hutchison, which have been in operation since 1997 under legally binding contracts. Over the years, the company has reportedly invested $1.8 billion in Panama, and created thousands of jobs in the country. Such contributions should have warranted respect and protection. In response, the company said on Wednesday its subsidiary had started arbitration proceedings against Panama.

The “judgment” cannot be divorced from political factors. If there were constitutional issues, why didn’t the relevant Panamanian authorities........

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