Hong Kong billionaire Li Ka-shing’s CK Hutchison Holdings has announced plans to sell its interests in the Panama Canal ports as part of a $22.8 billion (£17.8 billion) deal. The agreement, which includes a total of 43 ports across 23 countries, comes amid growing concerns from U.S. President Donald Trump and other American officials regarding Chinese influence over the crucial shipping route.
Through a subsidiary, CK Hutchison has operated ports at both the Atlantic and Pacific entrances of the Panama Canal since 1997. While the company is not state-owned, its Hong Kong base means it operates under Chinese financial regulations, raising concerns in Washington. The deal will require approval from the Panamanian government before it is finalized.
The 51-mile (82km) Panama Canal is a vital trade link between the Atlantic and Pacific oceans, with approximately 14,000 ships passing through annually. These include container ships transporting vehicles, natural gas, and military vessels. Built in the early 20th century, the canal was initially controlled by the U.S. before a series of treaties transferred control to Panama, culminating in full Panamanian sovereignty over the waterway in 1999.
In recent weeks, U.S. President Donald Trump has repeatedly argued that the United States should regain control over the canal, citing national security risks posed by Chinese influence. He has also contended that the U.S. should have greater authority over the canal due to its historic role in constructing the waterway and the fees charged to American ships.
During a February visit to Panama, U.S. Secretary of State Marco Rubio urged the Panamanian government to implement what he called “immediate changes” to reduce Chinese influence over the canal. However, Panamanian President Jose Raul Mulino has firmly rejected these claims, insisting that the canal “is and will remain” under Panama’s control.
Frank Sixt, co-managing director of CK Hutchison, emphasized in a statement that the sale is purely a commercial transaction and unrelated to political pressures. The purchasing group includes BlackRock, one of the world’s largest asset management firms, and Terminal Investment Limited, a Swiss company specializing in port operations.
