CK Hutchison Holdings is selling its Panama Canal port operations to a BlackRock-led consortium due to U.S. concerns over Chinese influence in the region. The sale encompasses key port assets and reflects broader geopolitical tensions between the U.S. and China regarding access to vital shipping routes.
In a significant development, HK-based CK Hutchison Holdings has agreed to sell its port operations near the Panama Canal to a consortium that includes BlackRock, following allegations from President Donald Trump regarding Chinese interference. The sale, finalized on March 4, involves Hutchison Port Holdings and Hutchison Port Group Holdings, which operate 80% of Hutchison Ports across 43 ports in 23 countries.
The consortium will acquire 90% stakes in Panama Ports Company, operator of the critical Balboa and Cristobal ports. Concerns have been raised by Senator Ted Cruz regarding potential Chinese exploitation of the canal, asserting risks to U.S. national security. He stated that the Chinese presence would provide “ready observation posts” for potential actions.
In recent diplomatic engagements, U.S. Secretary of State Marco Rubio urged Panama to mitigate Chinese influence over the canal, warning of possible U.S. retaliation. Despite these pressures, Panamanian President José Raúl Mulino denied Chinese control over canal operations. Following Rubio’s visit, Panama also withdrew from China’s Belt and Road Initiative, which was met with disapproval from Beijing.
While the focus was on President Trump’s threats toward the canal, his administration scrutinized Hutchison Ports operations. The company had recently secured a 25-year no-bid extension for managing the ports, however, an audit was underway, raising speculation about a possible re-bid to allow a U.S. firm to assume control.
The sale of Hutchison’s Panama Canal ports to a consortium led by BlackRock marks a strategic pivot amid escalating U.S.-China tensions. This transaction occurs against a backdrop of concerns over national security and foreign influence in critical infrastructure. Enhanced scrutiny of port management contracts further hints at U.S. initiatives to limit Chinese presence in such strategic locations.
Original Source: www.ttnews.com
