Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits

HONG KONG (AP) — A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company's contract over its Panama Canal port assets has been faced with lawsuits in the Central American country.

Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement.

Panama’s Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was “abusive” of Panama's interests.

In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas — Panama's currency — to the country's economy.

It said it wants to work with the government in Panama for a better future.

“Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,” it said.

The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city’s richest man.

Panama’s comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country.

Panama President José Raúl Mulino said during his weekly news conference on Thursday that he fully supported the comptroller’s case and would await the court’s verdict.

“We have all seen what that contract has costed the Panamanian nation over time,” Mulino said without elaborating. He alluded to some sort of public-private partnership for the ports, saying there was a lot of interest from private companies, but that it was in the early stages and provided no details.

CK Hutchison Holdings’ initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington.

U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities.

After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company.

The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal.

Panama Ports Company said Friday it would communicate with the Panamanian government “at the appropriate time,” affirming that it believes engaging with the government “is vital to discuss the way forward for” the company.

Panama's government maintains it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it.

Associated Press journalist Alma Solís in Panama City contributed to this report.

FILE - Workers carry out maintenance at the Pedro Miguel locks of the Panama Canal during routine upkeep in Panama City, Friday, May 30, 2025. (AP Photo/Matias Delacroix, File)

SEOUL, South Korea (AP) — North Korean leader Kim Jong Un said his country will unveil plans to further bolster its nuclear program at the upcoming ruling party congress, as he observed the North's latest weapons launch, state media reported Wednesday.

The Korean Central News Agency said North Korea performed a live-fire drill of an upgraded large-caliber multiple rocket launcher system in the presence of Kim on Tuesday, an apparent reference to what South Korea and Japan earlier described as ballistic missile launches from North Korea.

State media photos show Kim walking near a huge launch truck with his teenage daughter in her latest public appearance with her father. South Korea's spy service said in early 2024 it considered the girl, reportedly named Kim Ju Ae, as her father's likely heir.

KCNA quoted Kim Jong Un saying the test launch was meant to enhance the effectiveness of the country's “strategic deterrent,” a term used to describe its nuclear weapons capability. KCNA said the launcher system's mobility and strike accuracy have been improved.

Experts say North Korea’s large-sized rocket launchers blur the boundaries between artillery systems and ballistic missiles because they can create their own thrust and are guided during delivery. North Korea has said some of these systems are capable of delivering nuclear warheads.

Kim said that boosting the country's military capability is the invariable line of the ruling Workers' Party. He said the upcoming party congress, the first of its kind in five years, will be a venue to declare “next-stage plans for further bolstering up the country’s nuclear war deterrent,” KCNA said.

The congress, expected to start in February, is one of North Korea’s biggest propaganda spectacles and is used to establish new political and economic priorities.

Since December, North Korea has already test-fired what it called hypersonic missiles, long-range, strategic cruise missiles and new anti-air missiles. North Korea's recent testing activities were likely meant to demonstrate or review its weapons development achievements ahead of the congress.

KCNA didn't say what the next-stage nuclear development plan will be like. Many foreign analysts say North Korea needs to master an ability to place multiple warheads on a single missile to defeat its rivals’ missile defenses. There are also questions on whether North Korea has acquired the technology to shield warheads from the high-temperature, high-stress environment of atmospheric reentry for long-range missiles targeting the U.S. mainland.

North Korea has refused to engage in talks with the U.S. and South Korea since Kim's nuclear diplomacy with President Donald Trump collapsed in 2019. Experts say Kim could return to talks if he's assured of some economic and political rewards for limited denuclearization steps.

In this photo provided by the North Korean government, its leader Kim Jong Un, with his daughter, believed to be named Kim Ju Ae, inspects test-firing of ballistic missiles from an undisclosed location in North Korea, Tuesday, Jan. 27, 2026. Independent journalists were not given access to cover the event depicted in this image distributed by the North Korean government. The content of this image is as provided and cannot be independently verified. Korean language watermark on image as provided by source reads: "KCNA" which is the abbreviation for Korean Central News Agency. (Korean Central News Agency/Korea News Service via AP)