China Scrutinizes Hong Kong Firm’s Panama Canal Port Sale to US-Based BlackRock
China is examining a deal struck by Hong Kong conglomerate CK Hutchison to sell its port assets near the Panama Canal to a consortium led by US-based investment firm BlackRock, raising concerns over security risks and antitrust violations, as per Al Jazeera.
The move comes after US President Donald Trump previously voiced concerns about China’s influence over the strategic waterway.
According to a Bloomberg News report, Chinese leadership has directed multiple agencies to investigate the $22.8 billion transaction. The deal, announced earlier this month, would see Hutchison divest a significant portion of its global ports business, including facilities near the Panama Canal, to the BlackRock-led group.
The deal has already faced criticism within China. Following the announcement, the Hong Kong and Macau Affairs Office reposted commentaries labelling the sale a betrayal of Chinese interests and a neglect of national security.
Citing unnamed sources, Bloomberg reported that the investigation is focused on potential security risks and antitrust issues. A spokesperson for the Ministry of Foreign Affairs in Beijing directed reporters to other Chinese authorities for comment on the report.
CK Hutchison, a Hong Kong-based company registered in the Cayman Islands, has maintained that the deal is purely commercial.
“The transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” the company stated previously.
Hutchison has agreed to exclusive negotiations with the BlackRock consortium for 145 days.
While the deal remains unfinalized, it remains unclear what mechanisms, if any, China can employ to potentially block the transaction. The port assets are located outside of China and Hong Kong, and Hutchison is based in the Cayman Islands, complicating potential intervention.
The scrutiny follows repeated warnings from US politicians, including President Trump, about the potential security risks associated with Chinese-controlled operations at the Panama Canal. Trump has previously advocated for the removal of “Chinese control” over the vital waterway.
