China has blocked the $23 billion sale of dozens of ports worldwide—including two key facilities at the Panama Canal— to a U.S. based company BlackRock.
Following concerns raised by President Donald Trump about Beijing’s influence over critical global shipping lanes.
On March 4, CK Hutchison, a Hong Kong-based conglomerate controlled by billionaire Li Ka-shing, announced its plan to sell 43 port facilities around the world, including strategically significant ports at both ends of the Panama Canal and near the Suez Canal, for approximately $22.8 billion.
However, China’s State Administration for Market Regulation launched an unexpected investigation on Friday into possible violations of Chinese anti-monopoly laws, delaying the deal indefinitely.
Chinese President Xi Jinping is reportedly angered by CK Hutchison’s decision to sell its Panama Canal port operations, particularly because the company did not seek Beijing’s approval beforehand, according to the Wall Street Journal.
Insiders suggest that China had intended to use the port negotiations as leverage in its discussions with the Trump administration, but was caught off guard by how quickly the deal moved forward.
The proposed sale is led by BlackRock CEO Larry Fink, a longtime Trump ally, and was scheduled to be finalized by