The US and China have raised the stakes in their rivalry over the sale of Panama Canal ports to a US-led consortium. The Hong Kong conglomerate CK Hutchison sold 43 ports in 23 countries, including operations at the vital Central American canal, to a group led by giant asset manager BlackRock for $19 billion in cash.
China’s antitrust regulators have confirmed that they will review the deal, which is likely to prevent the parties from signing an agreement on April 2 as planned. The move reflects how container hubs have become prized currency in the rivalry between Beijing and Washington.
Experts say that US President Donald Trump can claim credit for “taking back” the canal as part of his “America First” agenda. China has expressed frustration over the deal, with some ports being located in nations participating in the Belt and Road Initiative, a global development framework championed by Chinese President Xi Jinping.
The sale of the ports is crucial to China’s efforts to promote its global development framework, but Beijing may be facing concerns about undermining its manufacturing dominance. The US has targeted key infrastructure projects under the Belt and Road Initiative, including the Panama Canal, in an effort to weaken China’s position as a global factory.
Analysts warn that if the deal crumbles under Chinese pressure, it could have far-reaching implications for Hong Kong, which is seen as a gateway to the world. The city’s role in trade and commerce may be affected by Beijing’s scrutiny of foreign business entities, including those registered outside China but with substantial operations on the mainland.
China’s antitrust laws can apply to companies outside its borders, and failure to declare transactions may result in fines. The review of the deal has raised concerns about Beijing’s willingness to protect its business interests abroad and has sparked debate about Hong Kong’s status as a major trade hub.
Source: https://www.yahoo.com/news/us-china-raise-stakes-panama-024148938.html