CK Hutchison’s subsidiary, Panama Ports Company (PPC), has initiated an ICC arbitration seeking USD 2 billion after Panama’s Supreme Court declared its port concessions at the Balboa and Cristóbal terminals unconstitutional. The Panamanian state subsequently took physical control of the terminals, promoting the investor to allege breaches of international law and investor protections. The dispute unfolds amid heightened geopolitical tensions over the Panama Canal anal infrastructure, following public pressure from US officials to reduce Chinese influence at Panamanian ports. The case highlights the fragility of long-term concession rights in strategic sectors where domestic constitutional law and global geopolitics intersect. It raises critical questions about how much deference international tribunals should give to a state’s highest court when its rulings impact foreign investments. For investors, it underscores the political risk premium inherent in infrastructure assets located at the junction of great-power competition.