When Hong Kong-listed conglomerate CK Hutchison announced it was selling its two port concessions on the Panama Canal to a US consortium led by New York-based giant BlackRock, the Chinese government issued a strongly worded rebuke.
Through government-backed newspaper Ta Kung Pao, Beijing accused the US of forcing the deal “through despicable means”, and claimed that if this was completed: “The United States will definitely use it for political purposes … China’s shipping and trade there will inevitably be subject to the United States.”
CK Hutchison’s decision to sell its ports, which it has operated since 1997, to a US-led buyer came after the US president, Donald Trump, criticised Chinese influence over this strategically vital waterway. In his inaugural address, Trump claimed, falsely, that “China is operating the Panama Canal” and vowed “we’re taking it back”. In fact, data shows that the majority of traffic through the canal goes to or from the US.
This has stoked fears in Beijing that US companies operating ports on the canal will do Washington’s bidding and potentially seek to restrict China’s access. Beijing’s angry response indicates the rivalry between the two great powers is deep and ongoing.
