The Panama Canal which is one of the most important trade routes in the world, became a major diplomatic firestorm late last year when current US President Donald Trump warned to reassert US control over the canal as he accused Panama of levying “exorbitant charges” to utilize the passage. However, it looks like he is losing to China over the control of the critical trade route.
However, contrary to Trump’s hopes, China is set to gain even greater influence over the Panama Canal following the collapse of a proposed deal between US-based BlackRock and Hong Kong’s CK Hutchison. Notably, BlackRock is so worried about Chinese snooping on them that they don’t even allow their employees to carry phones and laptops to China.
The original agreement was to transfer dozens of international ports, including the two key ports in Panama, to a consortium involving BlackRock (World’s largest asset management company). Donald Trump welcomed the deal and talked about reducing Chinese influence over the canal and even floated the idea of the US “taking back” the strategic waterway.
In fact, Trump demanded that the canal be returned to US control and lambasted Panama’s handling, telling Panamanian officials to “be guided accordingly.”
However, it looks like the critical canal just south of USA will remain in Chinese control as CK Hutchison announced that the exclusive negotiation window with BlackRock had expired.
US President Donald Trump had declared, “China is operating the Panama Canal, and we didn’t give it to China — we gave it to Panama — and we’re taking it back.” However, it looks like Trump is set for a massive disappointment.
CK Hutchison has operated both critical Panama ports since 1997, and it is owned by the wealthiest man in Hong Kong, Li Ka-Shing, and just like everything in China, everyone knows this is approved by the communist Chinese government.
This once again highlights the growing influence of China in global south as they continue to defy US President Trump.
The Panama canal was completed in 1914, and is one of the world’s major trade routes. The canal was handed over to Panama in 1999.
