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March 4, New York: American asset management giant BlackRock has reached an agreement to purchase two key ports at either end of the Panama Canal from a Hong Kong-based company, addressing concerns previously raised by former President Donald Trump about Chinese control in the region.
The deal, valued at $22.8 billion, involves BlackRock and a consortium of investors acquiring the Balboa and Cristobal ports from CK Hutchison, a Hong Kong-based firm. In addition to these strategic Panama Canal ports, BlackRock’s group is set to gain a controlling interest in 43 other ports spanning 23 countries. However, the deal does not include CK Hutchison’s operations in China or Hong Kong.
Trump’s Criticism of Chinese Involvement
During his presidency and beyond, Trump repeatedly expressed concerns about China’s role in the Panama Canal, stating that the U.S. should regain control of the waterway. “China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back,” Trump said during his inaugural address.
In January, just before assuming office for a second term, he refused to rule out the possibility of using military or economic pressure to reclaim control of the canal.
The White House has yet to officially comment on the BlackRock deal, but the transaction may ease Trump’s concerns about Chinese influence over the critical trade route. National Security Advisor Mike Waltz recently confirmed that Panama’s leadership had entered discussions to address the ownership of the ports.
BlackRock’s Expansion in Global Trade Infrastructure
BlackRock, one of the world’s largest asset management firms, with $11.6 trillion in assets, sees this acquisition as a long-term investment in global trade. Larry Fink, BlackRock’s CEO, emphasized the importance of these ports, stating, “These world-class ports facilitate global growth… We are thrilled our clients can participate in this investment.”
Although BlackRock does not directly control major corporations, it holds significant stakes in leading companies such as Apple, Microsoft, Amazon, and Walmart.
The Strategic Importance of the Panama Canal
Built by the United States in the early 20th century, the 51-mile-long Panama Canal was a crucial U.S. asset until its transfer to Panama in 1999, following a treaty negotiated under President Jimmy Carter. The canal plays a vital role in global trade, handling approximately 4% of the world’s maritime traffic and over 40% of U.S. container shipments.
For Panama’s economy, the canal is an essential revenue source, generating nearly $5 billion in profits in 2024. A study by IDB Invest found that 23.6% of Panama’s national income comes from the canal and related services.
U.S. Push for Free Passage for American Vessels
While removing Chinese ownership from the ports may satisfy one of Trump’s concerns, his administration has also demanded that Panama eliminate fees for U.S. vessels using the canal.
During a recent visit to Panama, Secretary of State Marco Rubio reiterated this demand, stating that the U.S. should not have to pay transit fees for a waterway it is committed to protecting in times of conflict. “It is absurd that we are expected to pay fees to transit a zone that we are obligated to defend,” Rubio said during a stop in the Dominican Republic.
With this latest deal, BlackRock’s acquisition of the Panama Canal’s ports could significantly shift the geopolitical and economic dynamics of this critical trade corridor.
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