China has strongly criticized a proposal to sell ports in the Panama Canal to BlackRock, calling it a “betrayal” and “spineless groveling.”
A state-backed commentary in Ta Kung Pao, later republished by China’s Hong Kong and Macao Affairs Office, triggered a sharp 6% drop in shares of CK Hutchison (CKH), the Hong Kong-based owner of the ports, on Friday.
Investor Concerns Over Beijing’s Reaction
Analysts say the market reaction signals fears that Beijing may block the deal.
“There is some chance that other influences may be brought to bear on the company that might put the deal at risk,” said Dan Baker, a senior equity analyst at Morningstar.
Last week, a consortium led by BlackRock announced plans to acquire the ports of Balboa and Cristobal from CK Hutchison for $22.8 billion. The deal also includes 43 other ports in 23 countries, subject to final approval.
Trump’s Panama Canal Claims
U.S. President Donald Trump has repeatedly expressed concerns over Chinese control of the canal’s port operations, suggesting that China “runs the canal.”
He pledged to “take back” the Panama Canal from Panama, which has controlled the crucial trade route since 1999 under a treaty negotiated two decades earlier.
Political Backlash
CK Hutchison, backed by Hong Kong billionaire Li Ka-shing, was expected to receive over $19 billion in proceeds from the sale.
However, Chinese state media blasted the move, accusing the company of “disregarding national interests” and “selling out all Chinese people.”
“Faced with such a major event and a matter of great justice, the relevant company should think twice,” the commentary warned.
Strategic Importance of the Canal
Completed in 1914, the 51-mile-long Panama Canal is vital to global trade. It handles 4% of global maritime commerce and over 40% of U.S. container traffic.
While the canal itself is operated by Panama, China has maintained a strong presence in its port infrastructure.
