A Hong Kong-based company has agreed to sell most of its stake in two major ports on the Panama Canal to a group led by US investment firm BlackRock.

US Concerns Over Chinese Influence

The sale follows weeks of criticism from former US President Donald Trump, who claimed China controls the canal and suggested the US should reclaim authority over the strategic shipping route. CK Hutchison Holdings, through a subsidiary, operates ports at both the Atlantic and Pacific entrances of the canal. On Tuesday, the company announced it would sell its interests in a deal valued at $22.8 billion (£17.8 billion).

Company Background and Deal Scope

CK Hutchison was founded by Hong Kong billionaire Li Ka-shing. Although it is not owned by the Chinese government, its Hong Kong base means it follows Chinese financial laws. The company has operated the ports since 1997. The sale includes 43 ports across 23 countries, including the two terminals in Panama. However, the deal requires approval from the Panamanian government before it can proceed.

Importance of the Panama Canal

The Panama Canal stretches 51 miles (82 km) across Central America, linking the Atlantic and Pacific Oceans. Each year, around 14,000 ships pass through, carrying goods such as cars, natural gas, and military equipment. Built in the early 1900s, the canal was under US control until 1977, when treaties began transferring authority back to Panama. After a period of joint management, Panama took full control in 1999.

US Pressure and Panama's Response

Trump has repeatedly pushed for the US to reclaim control of the canal. He argues that China’s influence poses a security risk, that US investment in the canal’s construction justifies retaking it, and that American ships face excessive fees to use the waterway. During a visit to Panama in February, US Secretary of State Marco Rubio urged the country to "immediately change" what he described as Chinese "influence and control" over the canal. However, Panama has firmly rejected these claims. President Jose Raul Mulino stated that the canal "is and will remain" under Panama’s control.

BlackRock's Role in the Deal

In a statement, CK Hutchison’s co-managing director, Frank Sixt, clarified that the transaction is "purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports." BlackRock, one of the world’s largest asset management firms, leads the group purchasing the ports. Swiss company Terminal Investment Limited is also part of the buying consortium.