China Steps Away from Ports in Panama
Under pressure from U.S. President Donald Trump, the Chinese company CK Hutchison Holdings announced the sale of 90% of its shares in Panama Ports Company (PPC) to a consortium led by BlackRock. The deal is valued at $22.8 billion in cash.
The Balboa and Cristobal ports, located on both sides of the Panama Canal, were considered crucial hubs for global trade. China had managed them for decades, but now control is shifting to an American company. This transition carries not only economic but also geopolitical significance, as the Panama Canal plays a key role in the global shipping system.
Trump has repeatedly criticized his predecessors for allowing China to gain influence in such a strategically important region. He even hinted at the possibility of military intervention to reclaim control, sparking protests in Panama and an official complaint to the UN.
Representatives of CK Hutchison stated that the deal is purely commercial. BlackRock CEO Larry Fink emphasized that acquiring these assets opens new investment opportunities and contributes to global economic growth. Panamanian authorities confirmed that the agreement was driven by mutual business interests, despite an ongoing audit of Panama Ports Company.
The deal also includes 43 ports across 23 countries, significantly expanding BlackRock’s portfolio. CK Hutchison, owned by Hong Kong billionaire Li Ka-shing, is one of the region’s largest conglomerates but has faced growing challenges in recent years, including U.S. pressure and a decline in Chinese overseas investments.
The sale of these assets underscores the rising geopolitical tensions surrounding the Panama Canal, through which 5% of global trade and 40% of U.S. container shipments pass. In early February, U.S. Secretary of State Marco Rubio visited Panama, securing a commitment from the country to withdraw from China’s Belt and Road Initiative.
Panamanian authorities assured that the country retains full control over the canal and that the port sale does not mean handing over a strategic asset to foreign management. However, the White House expressed concerns over China’s influence in the region and possible attempts to restrict U.S. shipping through the canal.
This deal marks a significant milestone in the global economic rivalry between the U.S. and China. The sale of Chinese assets in Panama could shift the balance of power in global logistics while strengthening the influence of American companies in the region.
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