China has blocked the $23 billion sale of dozens of ports worldwide—including two key facilities at the Panama Canal— to a U.S. based company BlackRock.
Following concerns raised by President Donald Trump about Beijing’s influence over critical global shipping lanes.
On March 4, CK Hutchison, a Hong Kong-based conglomerate controlled by billionaire Li Ka-shing, announced its plan to sell 43 port facilities around the world, including strategically significant ports at both ends of the Panama Canal and near the Suez Canal, for approximately $22.8 billion.
However, China’s State Administration for Market Regulation launched an unexpected investigation on Friday into possible violations of Chinese anti-monopoly laws, delaying the deal indefinitely.
Chinese President Xi Jinping is reportedly angered by CK Hutchison’s decision to sell its Panama Canal port operations, particularly because the company did not seek Beijing’s approval beforehand, according to the Wall Street Journal.
Insiders suggest that China had intended to use the port negotiations as leverage in its discussions with the Trump administration, but was caught off guard by how quickly the deal moved forward.
The proposed sale is led by BlackRock CEO Larry Fink, a longtime Trump ally, and was scheduled to be finalized by April 2. However, with China’s sudden intervention, it is increasingly likely that the deadline will be missed.
Trump has hailed the development as a strategic victory over China, emphasizing the importance of the Panama Canal in the larger geopolitical struggle between the two nations.
The canal, a vital route for global trade, has once again become a focal point of U.S.-China tensions, particularly as Trump renews his push for American control over key international shipping routes.
In response to the deal, an editorial in the pro-Beijing newspaper Ta Kung Pao condemned the sale as a “betrayal of all Chinese people.”
The timing of the announcement, which came just before China’s annual political and economic summit known as the “two sessions,” has only added to the tensions within the Chinese Communist Party.
Beijing’s decision to interfere with CK Hutchison’s business deal has fueled concerns among international analysts about China’s growing tendency to blur the lines between the private and public sectors.
The move has also reinforced fears about Beijing’s increasing influence over Hong Kong’s economy and autonomy.
Trump has previously claimed that China controls the Panama Canal and operates it through its military. However, in reality, CK Hutchison, which is at the center of the port sale, is based in Hong Kong—a semi-autonomous region historically known for its operational independence from Beijing.
The dispute over the canal’s ports comes at a time when U.S.-China tensions remain high, particularly amid the ongoing trade war. Trump is expected to escalate economic pressure on Beijing by announcing a new round of “reciprocal tariffs” later this week.
The delay in the port sale now adds another layer of uncertainty to the already fragile relationship between the world’s two largest economies.