Why is China angry about a plan to sell two ports on the Panama Canal?

Cranes load a cargo ship at the Panama Canal’s Balboa Port in Panama City, Panama, on September 9, 2024 [Matias Delacroix/AP]

| Published April 1, 2025

Beijing’s displeasure over conglomerate’s plans highlights tightening business environment in Hong Kong.

 

China has expressed strong opposition to the planned sale of two major ports along the Panama Canal, a deal that could shift control of these key maritime assets from a Hong Kong-based company to a U.S.-led investment consortium. Beijing sees the move as a direct challenge to its strategic influence in Latin America and a potential threat to its global trade routes.

Chinese regulators have blocked a $23 billion sale of key ports, including two in the Panama Canal, to a group led by BlackRock.REUTERS

 

The Proposed Deal

The controversy centers around a proposed $23 billion sale by Hong Kong-based CK Hutchison Holdings, which currently operates port facilities at both ends of the Panama Canal. The buyer, a consortium led by U.S. investment giant BlackRock, aims to take control of these critical trade hubs. If the deal proceeds, it would effectively place a key segment of global maritime commerce under American influence.

China’s State Administration for Market Regulation has intervened in the deal. BlackRock CEO Larry Fink is pictured above.REUTERS

 

China’s Reaction and Strategic Concerns

China views the sale as a setback to its Belt and Road Initiative, which has expanded Chinese investments in global infrastructure. The Panama Canal serves as a crucial link for Chinese exports to North and South America, and losing operational control of the ports could impact China’s trade logistics and supply chain security.

Beijing has responded by launching an antitrust review, which could delay or potentially block the sale. Chinese officials have also signaled their dissatisfaction to CK Hutchison for proceeding with the transaction without consulting Beijing. The move reflects China’s broader strategy of maintaining strong economic footholds in key global trade routes.

 

U.S. and Panama’s Position

For the United States, the deal represents a strategic opportunity to counter China’s growing influence in Latin America. The U.S. government has long been wary of Chinese control over strategic infrastructure in the Western Hemisphere, and securing control over these ports aligns with Washington’s broader efforts to reassert influence in the region.

President Trump has vowed to reassert American dominance over the Panama Canal.AFP via Getty Images

The Panamanian government has remained relatively neutral, emphasizing that any transaction must comply with legal and regulatory requirements. However, given the economic and geopolitical stakes, Panama may find itself caught in the middle of an intensifying power struggle between the world’s two largest economies.

As tensions rise, the future of the deal remains uncertain. If China successfully delays or blocks the sale, it could reinforce its control over strategic assets in the region. If the U.S.-led consortium secures the ports, it would mark a significant shift in regional power dynamics, potentially setting the stage for further geopolitical confrontations.

The battle over Panama’s ports is more than just a business transaction—it’s a reflection of the broader U.S.-China rivalry, with global trade security and economic dominance hanging in the balance.

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SOURCES: AL JAZEERA – Why is China angry about a plan to sell two ports on the Panama Canal?

NEWS YORK POST – China delays $23B sale of Panama Canal ports to US-backed consortium led by BlackRock

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