China is making fresh accusations against the United States. Beijing’s antitrust regulators launched an investigation into the allegations that a Washington consortium is deliberately trying to delay and postpone two deals in the Panama Canal Zone. The deal was supposed to be finalized this week, but it didn’t happen.
The deal was led by BlackRock, the world’s largest asset manager with $11.6 trillion in assets. BlackRock has been seen as a way to ease tensions in the region and its involvement was announced last month. BlackRock has agreed to lead a group that will buy Hong Kong firm CK Hutchison’s interests in 43 different ports, covering 199 berths in 23 countries.
However, the State Administration for Market Regulation of China, the country’s top market regulator, said it was investigating the deal to ensure that it was conducted in accordance with the law and that it protected both the principle of fair competition in the market and the public interest.
Following the announcement, CK Hutchinson decided not to sign any more agreements related to the two Panamanian ports this week.
Earlier last month, a group of investors led by BlackRock said it would spend $22.8 billion to buy the Balboa and Cristobal ports at either end of the Panama Canal from CK Hutchison.
Mike Waltz, Trump’s national security adviser, told reporters late last month that Panama’s leadership had begun “negotiations on managing the ports on both sides of the canal.”
The construction of the Panama Canal began in the early 20th century under the direction of the United States and was completed in 1914. For much of the 20th century, the canal remained under U.S. control. However, during the Carter administration, an agreement was reached to transfer control to Panama, and since 1999, the country has independently managed its operations. Upon taking office, President Donald Trump adopted a firm stance on the Panama Canal, particularly voicing concerns over the management of its ports by the Chinese company CK Hutchison. In response to this pressure, CK Hutchison ultimately decided to relinquish its position and agreed to sell its shares.
