Beijing (Agencies): China has halted a $23 billion deal that would have transferred control of key Panama Canal ports to a U.S.-led consortium, citing economic and geopolitical concerns. The move, which comes as tensions between Beijing and Washington escalate, has put a spotlight on the strategic importance of the canal and China’s growing assertiveness in global trade affairs.
The deal, announced in early March, involved Hong Kong-based CK Hutchison Holdings selling Hutchison Port Holdings—an operator of 43 ports across 23 countries, including two of the Panama Canal’s four major ports—to a BlackRock-led consortium. The sale was expected to be finalized by April 2. However, China’s State Administration for Market Regulation (SAMR) launched an antitrust review, delaying the transaction indefinitely.
In a statement, the Chinese Foreign Ministry defended the intervention, arguing that it was aimed at safeguarding “market fairness and public interest.” Beijing has also expressed strong opposition to what it sees as “economic coercion and hegemony” in the global economy.
The move follows Panama’s recent decision to withdraw from China’s Belt and Road Initiative, a development that angered Beijing. Some analysts believe China’s regulatory review is a retaliatory measure to prevent the U.S. from gaining greater influence over the canal’s operations.
The Panama Canal is a critical global trade route, handling over 14,000 ships per year and accounting for approximately 5% of world trade. The U.S. relies on the canal for East-West shipping routes and the transport of liquefied natural gas (LNG) and agricultural exports to Asia. For China, the canal is a crucial gateway to Latin American markets, which supply the country with food, raw materials, and energy resources.
Within China, the potential sale has faced criticism from pro-Beijing media. Hong Kong-based Ta Kung Pao labeled the deal a betrayal of Chinese interests, warning that allowing U.S. control over Panama’s ports could weaken China’s strategic position in global shipping.
The delay in finalizing the sale has already drawn reactions from Washington. BlackRock CEO Larry Fink reportedly assured the White House that the port facilities could be brought under U.S. control without military intervention. Former U.S. President Donald Trump, who previously advocated “reclaiming” the Panama Canal, was believed to have supported the deal behind the scenes.
With no clear resolution in sight, the standoff over the ports underscores the growing competition between China and the United States for control of key global infrastructure. The outcome of the deal could set a precedent for future cross-border acquisitions of strategic assets.