After Trump threats, Hong Kong firm to sell stake in Panama Canal ports

A Hong Kong-based company announced it would sell its stake in two Panama Canal ports to a U.S.-led consortium, responding to President Donald Trump’s concerns over Chinese influence at the waterway. Trump had warned of reasserting U.S. control over the canal, handed to Panama in 1999. Panama’s president emphasized that China does not operate the canal; it is managed by the independent Panama Canal Authority.

CK Hutchison, the Hong Kong firm, controlled 90% of the Panama Ports Co., which operates the ports of Balboa and Cristobal. The proposed sale is part of a larger $22.8 billion deal where the consortium led by BlackRock would acquire an 80% interest in CK Hutchison’s units operating 43 other ports globally.

Trump’s threats alarmed Panama and regional leaders. Secretary of State Marco Rubio urged immediate changes during his visit to Panama. A CK Hutchison official stated the sale resulted from a competitive process unrelated to recent political news. However, analysts believe the sale was influenced by Trump’s threats. Panama has been auditing CK Hutchison’s operations, with officials questioning the fairness and constitutionality of its contracts.

John Feeley, a former U.S. ambassador to Panama, called the sale an “elegant solution” easing bilateral tensions. Jorge Luis Quijano, a former Panama Canal administrator, noted it reduces concerns over Chinese administration of the canal, which China labeled as “pure lies” aimed at damaging relations with Panama.

— news from The Washington Post

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