In a significant move, Chinese company CK Hutchison has agreed to sell its two ports on the Panama Canal to the U.S. investment firm BlackRock. This decision follows strong pressure from former President Donald Trump, who has voiced concerns about China’s growing influence over this critical waterway.
The deal not only includes the Panama ports but also an 80% stake in CK Hutchison’s global port operations, which cover 43 ports in 23 countries. Trump’s administration had raised alarms about the potential military use of the canal by China and its increasing presence in Latin America. This prompted calls for Panama to limit Chinese influence in the region.
The Panama Canal, which has been managed by the Panama Canal Authority since the U.S. handed over control in 1999, has become a key focus for U.S. efforts to counter China’s expansion on the global stage. The sale reflects ongoing tensions between the U.S. and China, particularly regarding strategic assets and influence in vital regions.
With this sale, the U.S. aims to regain a foothold in a crucial area that has significant implications for international trade and security.