U.S. Creeps Closer to Panama Canal Control As BlackRock Acquires 2 Ports From HK Billionaire Li Ka-Shing

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A consortium led by BlackRock has struck a $23 billion deal to acquire two key ports near the Panama Canal, marking a significant shift in control over critical shipping infrastructure. The ports, Balboa and Cristobal, were previously owned by Hong Kong-based CK Hutchison Holdings, a company founded by billionaire Li Ka-shing. The sale comes weeks after President Donald Trump raised concerns about Chinese influence over the canal, though China has never controlled its operations.

Did BlackRock Buy the Panama Canal?

Despite Trump’s claims of “reclaiming the Panama Canal,” BlackRock did not purchase the canal itself. Instead, the deal grants the U.S.-based firm control over the ports that handle cargo entering and exiting the waterway. The Panama Canal Authority, a government agency, continues to oversee canal operations.

This distinction is important. While the canal remains under Panama’s jurisdiction, the BlackRock-led acquisition shifts control of its surrounding infrastructure away from Chinese-linked ownership to an American entity. The U.S. is the canal’s largest user, with 70% of its shipping traffic connected to American trade.

Why Did CK Hutchison Sell Its Panama Ports?

CK Hutchison’s decision to sell was driven by political pressure. Trump had accused China of using the Panama Canal for strategic leverage, prompting scrutiny of CK Hutchison’s operations. While the company denies any connection to the Chinese government, its Hong Kong base made it a target of Washington’s concerns over foreign influence.

Adding to the pressure, Panamanian authorities launched an audit of CK Hutchison’s port contracts earlier this year. The audit, along with legal challenges to its 25-year no-bid extension, suggested mounting obstacles to its continued operation. Rather than face the uncertainty, the Li family chose to exit the business.

The deal with BlackRock, Global Infrastructure Partners (GIP), and Terminal Investment Limited (TIL) ensures the ports remain in private hands while securing a politically favorable outcome for both Panama and the U.S.

Who Is Li Ka-shing?

Li Ka-shing, once Asia’s richest man, built a vast business empire spanning real estate, telecommunications, and ports. His CK Hutchison Holdings controls port operations in over 20 countries, making it a dominant player in global trade. Though retired, Li’s legacy continues under his son Victor Li, who now runs the conglomerate.

Despite Li’s longstanding business ties with the West, his company’s ownership of strategic infrastructure in Panama became a liability. With rising U.S.-China tensions, CK Hutchison found itself caught in the crossfire.

BlackRock and Trump: A Complicated Relationship

BlackRock’s involvement in the Panama Canal deal highlights its growing influence in geopolitics. CEO Larry Fink, once criticized by conservatives for promoting ESG policies, has since pivoted to align BlackRock more closely with the America First agenda.

Trump’s administration has backed the deal, despite past friction with BlackRock’s leadership. The firm has been shifting away from ESG initiatives, which had drawn criticism from Trump allies. By securing a deal that removes Chinese-linked ownership from a key global trade hub, BlackRock may have found a way to repair its standing with conservative policymakers.

What’s Next for the Panama Canal?

While BlackRock now controls the ports, Panama remains in charge of the canal itself. However, Trump’s rhetoric suggests that his administration may push for further U.S. involvement. His claims that Panama charges excessive fees for canal access signal that Washington could exert more pressure in the future.

Panama’s government has framed the BlackRock deal as a private transaction with no political motives. However, given the geopolitical stakes, it’s unlikely that the Panama Canal’s role in U.S.-China relations will fade from the spotlight anytime soon.

Does BlackRock’s deal improve U.S. national security in the Panama Canal region? Tell us what you think!

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