HONG KONG (Diya TV) — China stopped the $23 billion sale of strategic Panama Canal ports to a group led by U.S. investment firm BlackRock on national security grounds and fears of antitrust breaches.
Conglomerate CK Hutchison, based in Hong Kong, had been planning to sell off its port assets around the world, including the Balboa and Cristobal ports that lie at each end of the Panama Canal. The sale, which would have passed control to BlackRock and its investors, was due to be completed by April 2.
Still, Beijing’s State Administration for Market Regulation initiated an antitrust probe, effectively suspending the sale. Chinese officials have condemned CK Hutchison’s sale of the ports as an affront to national interests. A commentary piece in the state-run Ta Kung Pao newspaper described the sale as “spineless groveling” and accused the company of “betraying and selling out all Chinese people.
The delay has introduced fresh tensions into U.S.-China relations. Former President Donald Trump has positioned the possible acquisition as a strategic victory for American interests, contending that taking back control of key global shipping routes is necessary.
In reaction to the suspended sale, China has allegedly ordered state-owned companies to put on hold new transactions with companies associated with Hong Kong tycoon Li Ka-Shing, the owner of CK Hutchison.
