A $23 billion deal by BlackRock to take ownership of Panamanian ports Cristobal and Balboa has raised concerns from Chinese authorities, including Hong Kong’s leader John Lee, who described it as deserving “serious attention.” The agreement was seen as a solution to former US President Donald Trump’s threats to take back the Panama Canal after he argued that China was using it to unfairly charge US ships entry fees.
Beijing is investigating potential antitrust and national security concerns about the deal through various agencies. US-China relations expert Gordon Chang said if Beijing stops the deal, it would be a direct challenge to Trump’s presidency and not go down well.
The Panama Canal sees 5% of global maritime trade pass through, making it a lucrative waterway. CK Hutchison’s stock price fell after Lee’s comments, and the company canceled press and investor briefings scheduled for this week.
China has been firm in opposing economic coercion and bullying tactics in international relations, according to foreign ministry spokesperson Mao Ning. The deal also faces a constitutional challenge in Panama, which could be a factor in its intent to sell.
Source: https://www.foxnews.com/politics/china-hong-kong-threaten-thwart-sale-panama-canal-ports-americas-blackrock