LUBBOCK, TX – China’s government is threatening to block a proposed $23 billion deal that would transfer ownership of dozens of ports—including two at the Panama Canal—from Hong Kong-based CK Hutchison to Western investors unless Chinese shipping giant Cosco is granted a stake.
The Wall Street Journal reports that state-owned Cosco is seeking to become an equal partner alongside BlackRock and Mediterranean Shipping Co. (MSC), who reached a preliminary agreement in March to acquire Hutchison’s global ports portfolio. The deal includes 43 ports in 23 countries. Sources indicate all parties are now open to Cosco’s participation to avoid Chinese government interference.
The deal has drawn scrutiny from President Donald Trump, who has opposed Chinese control of Panama Canal operations. Trump previously threatened to take over the canal, calling it vital to U.S. interests. The White House has not issued a formal response.
Reuters reports that CK Hutchison, led by tycoon Li Ka-shing, confirmed MSC as the primary investor. The proposed divestiture has stirred political debate in China and the U.S., as concerns grow over Beijing’s influence on global shipping lanes.
The Panama Canal remains a critical trade corridor, particularly for U.S. agriculture. According to the American Farm Bureau Federation, the canal handles 72% of cargo headed to or from the United States, including 18% of corn exports, 32% of soybeans, and over 90% of sorghum exports.
Ongoing drought has reduced capacity, increasing congestion and costs. Roughly 10,000 ships transit the canal annually, accounting for 2.5% of global maritime trade.