Panama’s Supreme Court annulled the concession held by Hong Kong-based CK Hutchison Holdings’ subsidiary Panama Ports Company to operate ports on both sides of the Panama Canal.

The decision was issued late Thursday by Panama’s top court and found the Chinese control of the canal ports unconstitutional, voiding the existing concession arrangement for the two ports. The ruling followed an audit by Panama’s comptroller that raised concerns about a 25-year concession extension granted in 2021. China’s Foreign Ministry said it would take “necessary measures” to protect the rights and interests of Chinese companies but did not specify actions.