A Hong Kong-based conglomerate has agreed to sell its stakes in Panama’s key ports to a consortium led by BlackRock Inc., following US concerns over Chinese influence in the critical shipping route.
CK Hutchison Holdings announced on Tuesday that it would divest all shares in Hutchison Port Holdings and Hutchison Port Group Holdings. These two units collectively control 80% of Hutchison Ports, which operates 43 ports across 23 countries.
The deal hands a 90% stake in Panama Ports Company—operator of the Balboa and Cristobal ports—to BlackRock, Global Infrastructure Partners, and Terminal Investment Limited.
US scrutiny and Chinese influence concerns
The sale follows rising tensions over China’s role in the Panama Canal. In January, Sen. Ted Cruz warned that China’s access to the ports could allow it to “exploit or block passage” and create “acute risks for US national security.”
Secretary of State Marco Rubio escalated the pressure in February, telling Panama’s President José Raúl Mulino that Chinese influence over the canal had to be curtailed—or face US retaliation. Shortly after, Panama withdrew from China’s Belt and Road Initiative, triggering criticism from Beijing.
Trump’s focus on retaking control
While Trump’s administration had publicly threatened to reassert US control over the canal, officials quietly turned their attention to Hutchison Ports. The company had secured a 25-year no-bid extension to operate the ports, but a US-backed audit signaled that the deal was under review.
Speculation mounted that a rebidding process was imminent and that a US firm with close ties to the White House was being positioned to take over. The latest sale suggests a preemptive move to shift control before further US action.
With the deal in place, American firms now hold a commanding stake in Panama’s key ports—reshaping the balance of power along one of the world’s most strategic trade routes.
