US President Donald Trump’s administration has sold Hong Kong-listed conglomerate CK Hutchison’s two port concessions on the Panama Canal to a US consortium led by BlackRock, sparking a strongly worded rebuke from the Chinese government. Beijing claims the deal will be used for “political purposes” and that China’s shipping and trade in the region will be subject to US influence.
The sale comes after Trump criticized Chinese influence over the canal during his inaugural address, claiming that “China is operating the Panama Canal”. However, data shows that most traffic through the canal goes to or from the US. Beijing fears that US companies operating ports on the canal will restrict China’s access and do Washington’s bidding.
Trump’s approach to China has been shaped by his views on China as an economic adversary. He has imposed punitive tariffs of 20% on all incoming goods, prompting China’s retaliation with its own tariffs and proposed restrictions on exports of rare earth minerals. These vital components are used in semiconductors, electric batteries, and many weapons.
The US State Department recently signalled a possible shift in policy towards Taiwan, removing the phrase “we do not support Taiwan independence” from its fact sheet on Taiwan. This move has irritated Beijing, which sees the island as an integral part of China. However, it remains to be seen how Trump’s diplomacy with Russia and his comments about absorbing Greenland will shape US foreign policy.
Trump’s approach is often described as “strongman” leadership, where he takes maximalist positions to extract concessions from other countries. He has a reputation for provoking the globalist foreign policy establishment and would not want to fight a war with China over Taiwan. Despite this, it is unclear whether Trump will seek a deal with China that guarantees US access to imported chips from Taiwan in return for China absorbing the island peacefully.
As the US-China relationship continues to intensify under Trump’s presidency, there are multiple plausible outcomes. While some may see Trump’s approach as hostile and competitive, others may view it as an opportunity for cooperation and avoiding war.
Source: https://theconversation.com/chinese-anger-at-sale-of-panama-canal-ports-to-us-investor-highlights-tensions-between-the-two-superpowers-252418