By Evans Momodu
Publshed 15: 43 UK GMT


China has strongly criticised a proposed sale of ports in the Panama Canal to US asset management giant BlackRock, calling the deal “spineless grovelling” and a “betrayal” of the Chinese people.

The harsh remarks, published in the state-owned Ta Kung Pao newspaper and reposted by China’s Hong Kong and Macao Affairs Office, triggered a 6% drop in CK Hutchison (CKH) shares on Friday. Investors are now concerned that Beijing’s opposition could derail the transaction.

BlackRock’s $22.8 Billion Port Deal

Last week, a BlackRock-led investor group announced a $22.8 billion deal to purchase ports in Balboa and Cristobal—key locations at either end of the Panama Canal—from Hong Kong-based CK Hutchison.
The consortium also agreed to acquire CKH’s controlling interest in 43 additional ports across 23 countries.

Despite the deal being an “agreement in principle”, analysts warn that Chinese authorities could exert pressure on CKH to block the sale.

“I’m not aware that any approval from Chinese regulators is required, given CKH is retaining all of its existing Chinese ports,” said Dan Baker, a senior equity analyst at Morningstar.

“Of course, other influences may be brought to bear on the company that might put the deal at risk.”

Trump’s Push to ‘Take Back’ the Panama Canal

US President Donald Trump has repeatedly expressed his desire to “take back” the Panama Canal, citing concerns over Chinese influence on port operations in the region.

The Panama Canal was handed over to Panama in 1999 under a treaty signed with the United States in 1979.

Trump has suggested that Chinese ownership of key port operations amounts to China running the canal, reinforcing his administration’s push to secure greater American control over critical infrastructure.

With Beijing’s vocal opposition and geopolitical tensions escalating, it remains uncertain whether the BlackRock deal will proceed as planned.
Source: CNN