BlackRock to take control of ports in Panama Canal from Hong Kong firm as US worries over Chinese influence grow

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.

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