Panama, a small nation with outsized influence due to its role in global shipping, faces a tricky balance: navigating foreign investment and its alignment with two great powers, the United States and China. The main ports at either end of the Panama Canal, built with US investment, are operated by Panama Ports Company, a subsidiary of CK Hutchinson Holdings – a Hong Kong-based conglomerate with strong ties to Beijing – which owns a 90% stake in the company. On 3 March 2025, the American asset-management firm BlackRock led an investor consortium in signing an agreement to purchase the concessions to operate these ports – Balboa and Cristobal – for nearly US$23 billion. This deal came together as Panama faced unprecedented criticism from Washington for its management of the canal. The day after the deal announcement, US President Donald Trump said during his address to a joint session of Congress that the canal was ‘built at tremendous cost of American blood and treasure’ and that his ‘administration will be reclaiming’ it. While the Trump administration views this deal as a strategic victory to restore American influence over the Panama Canal, Beijing has expressed strong opposition. CK Hutchinson Holdings saw a 6% stock-price decrease on 14 March after being rebuked by Ta Kung Pao, a Hong Kong newspaper with close ties to Beijing.
Great-power competition in the Panama Canal (Jenny Duan, IISS)
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