Hutchison sold the Panama Canal ports to a US firm, and China is furious

The deal will see BlackRock take control of Hong Kong's CK Hutchison's 43 container ports across 23 countries, including the key Balboa and Cristobal docks of the Panama Canal

Hong Kong-based CK Hutchison Holdings has sparked sharp criticism from Beijing after selling its stakes in the Panama Canal ports to US investment giant BlackRock. The $23 billion deal, announced earlier this month, has further escalated geopolitical tensions, with Chinese officials warning against collaboration with American interests.

 

Hutchison surprised global markets with its decision to divest nearly all of its global port holdings, except those in China. The deal transfers 43 container ports across 23 countries—including the strategic Balboa and Cristobal docks at both ends of the Panama Canal—to BlackRock-led investors. Hutchison is set to receive $19 billion in cash from the transaction.

 

 

Did the US pressure Hutchison into selling?

 

The sale follows growing pressure from the US, with President Donald Trump, after securing re-election, calling for an end to what he described as China’s control over the strategic waterway.

 

Analysts suggest that Washington’s push to curb Chinese influence in Latin America has intensified in recent months, raising speculation that external diplomatic pressure played a role in Hutchison’s decision.

 

Beijing’s reaction: Hutchison prioritised profit over national interests

 

Beijing has reacted strongly to the deal, with state-backed media openly criticising Hutchison.

 

A commentary published in the pro-Beijing newspaper Ta Kung Pao accused Hutchison of putting profits ahead of national security. The piece—later reposted by the Hong Kong and Macau Affairs Office and the central government’s liaison office—argued that the sale favours US strategic interests at China’s expense.

 

The editorial warned that businessmen aligning with American interests risk damaging their reputation and future prospects in China.

 

The article further questioned why Hutchison so easily agreed to hand over critical port infrastructure to what it described as an “ill-intentioned US entity.”

 

This marks the second time in three days that Beijing-affiliated media has publicly criticised the deal, indicating mounting pressure on Hutchison to rethink its decision.

 

Hutchison’s dilemma: Caught between the US and China

 

Hutchison is now in a tight spot—stuck between two superpowers.

 

> If it backs out, it risks being seen as bowing to Beijing’s pressure, which could lead to US backlash.

> If it proceeds with the sale, the company could face regulatory pushback in China, threatening its other business interests.

  Historically, Chinese officials have favoured entrepreneurs who align with national interests. Beijing’s latest criticism referenced Hong Kong industrialist Chao Kuang-piu, who prioritised China’s economic goals over financial risks during the 1970s economic reforms.

 

By drawing this comparison, the message from Beijing is clear—business interests should not come at the cost of national priorities.

 

BlackRock’s low-profile role in the transaction

 

Despite being one of the world’s largest investment firms, BlackRock has maintained a low profile regarding the deal.

 

> The firm, which manages $11.5 trillion in assets, has deep business interests in China and Hong Kong.

> CEO Larry Fink has long-standing ties with President Trump, dating back to their business dealings in New York.

  While BlackRock has faced past scrutiny for its investments in China, its entry into the Panama Canal’s port operations has raised new geopolitical concerns.

 

Some analysts believe this is more than just a business transaction—it could signal a broader US strategic move to weaken China’s control over global trade infrastructure.

 

What happens next?

 

With Beijing stepping up its opposition, the deal could face regulatory hurdles or diplomatic interventions.

 

> If the sale goes through, it would be a major strategic win for the US, securing a stronger foothold in the Panama Canal.

> If China successfully pressures Hutchison to back out, it would reinforce Beijing’s grip over key infrastructure deals worldwide.

  For now, CK Hutchison is caught in a high-stakes power struggle, with both the US and China applying pressure in opposite directions.