A consortium of firms led by BlackRock is buying two key ports in the Panama Canal from a Hong Kong-based firm for nearly $23 billion after President Donald Trump expressed concern that the strategic waterway was falling under Chinese influence.
BlackRock, the world’s largest asset manager with a portfolio of investments valued at $11.5 trillion, has agreed to purchase majority stakes in ports on both sides of the Panama Canal from Hong Kong-based CK Hutchison for $22.8 billion, the companies announced on Tuesday.
The deal would shift control of the strategic ports of Balboa and Cristobal into American corporate hands, a move that aligns with the Trump administration’s concerns over foreign influence near the canal.
While Panama retains full sovereignty over the canal itself, the presence of Chinese-controlled ports has been flagged as a potential security risk by US officials.
Earlier this month, Panama decided not to renew its participation in China’s Belt and Road Initiative (BRI), becoming the first Latin American country to exit the program.
President José Raúl Mulino announced the decision after discussions with Secretary of State Marco Rubio, who raised concerns about China’s expanding influence in the Panama Canal region.
BlackRock — headed by billionaire CEO Larry Fink — has briefed both the Trump administration and Congress about the acquisition, according to a person familiar with the discussions.
The sale is expected to ease fears about China’s role in Panama’s infrastructure, as Beijing has expanded its presence in the region through state-backed firms.
CK Hutchison told the Wall Street Journal that the transaction was “purely commercial in nature” and unrelated to recent political discussions regarding the Panama Canal.
Trump has voiced strong concerns over the Panama Canal, claiming that China holds too much influence over its operations.
In his inaugural address on Jan. 20, he declared, “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.”
Before taking office, then-President-elect Trump alleged that Panama was charging “exorbitant” fees to American ships, suggesting this violated the Torrijos–Carter Treaties, which transferred the canal from US control to Panama in 1999.
He further stated that the canal was “falling into the wrong hands,” implying Chinese influence over its operations.
Trump has also indicated that military intervention remains a possibility to counter what he sees as China’s growing control of the canal, emphasizing its strategic importance to US economic security.
His statements have sparked strong reactions from Panamanian officials, who insist the Panama Canal remains under their sovereign control and operates independently.
They have repeatedly denied any foreign control, particularly by China.
Concerns about China’s influence over the canal have been debated in Washington for years.
Some policymakers argue that Chinese port operators could monitor US ship movements or use the facilities for potential military operations.
However, Panamanian authorities and former US military officials have denied these claims, emphasizing that the ports pose no security threat and that the canal remains neutral.
The deal represents BlackRock’s largest-ever infrastructure acquisition and highlights the firm’s growing push into private infrastructure investments.
The purchase is being carried out in partnership with BlackRock’s infrastructure arm Global Infrastructure Partners (GIP) and Geneva-based Terminal Investment Limited.
Beyond the Panama Canal ports, the consortium will also acquire 43 additional ports in 23 countries from CK Hutchison.
BlackRock’s Fink has aggressively expanded the firm’s infrastructure investment strategy, particularly after acquiring GIP in 2023.
GIP manages a vast portfolio of energy, transportation, and utilities assets, including London Gatwick Airport, US natural gas pipelines and data centers.
If finalized, the BlackRock-led acquisition could mark a significant geopolitical shift, reinforcing American influence in one of the world’s most critical trade routes.
The Post has sought comment from BlackRock and the White House.
