US President Donald Trump’s deal with China over the Panama Canal has been delayed as Chinese antitrust regulators have launched an investigation into a consortium led by BlackRock. The deal was set to be closed next week but is now on hold.
The consortium, which includes Hong Kong firm CK Hutchison, had agreed to buy control of 43 ports worldwide, including two in the Panama Canal zone. However, China’s State Administration for Market Regulation has started an investigation into the deal “in accordance with the law” to protect fair competition and safeguard public interest.
As a result, CK Hutchinson has decided not to proceed with signing the deal next week, according to a source close to the Hong Kong firm. BlackRock declined to comment on the matter.
The Panama Canal is crucial for global trade and military ships, with about 4% of world maritime trade and 40% of US container traffic passing through it. Tensions between China and the United States have been growing recently, with both countries imposing tariffs on each other.
The canal has a long history, dating back to the early 20th century when it was built by the United States. It was operated by the US until its handover to Panama in 1999. Despite Trump’s claims that China controls the canal, it is actually controlled by Panama.
Trump has demanded that Panama remove Chinese influence from the canal and charge no fees to American vessels. This move would be a significant shift in US-Canada relations. The investigation into the deal has added another layer of uncertainty to already tense trade relations between the two countries.
Source: https://edition.cnn.com/2025/03/28/business/panama-canal-ports-deal-blocked/index.html