CK Hutchison Delays Deal for Strategic Panama Canal Ports Amid Geopolitical Tensions

Hong Kong-based CK Hutchison, led by tycoon Li Ka-shing, will not sign the anticipated deal next week to sell its two strategic ports at the Panama Canal to a consortium led by BlackRock.

Although the sale was scheduled for April 2, according to a March 4 announcement, a source cited by the South China Morning Post indicated that the deal has not been officially canceled. Neither CK Hutchison nor BlackRock responded to Reuters‘ inquiries.

The controversy surrounds the reaction from various stakeholders: Chinese authorities have expressed discontent with the plan, whereas US President Donald Trump praised the deal as a step toward reclaiming control over the crucial waterway.

CK Hutchison’s unit operates two of the five ports adjacent to the Panama Canal, a vital route that handles around 3 % of global maritime trade. Panama originally granted the concession to CK Hutchison in 1998 with a further 25-year extension approved in 2021.

The highly politicized deal, estimated to bring in over $19 billion in cash, has become a focal point of US-China geopolitical tensions. Pro-Beijing Hong Kong newspaper Ta Kung Pao argued in an editorial that the transaction should be scrapped, characterizing it as a “perfect cooperation” with US efforts to contain China.

Additionally, Bloomberg News noted that Chinese authorities had directed state-owned firms to postpone any new transactions with businesses associated with Li and his family.