A group of U.S. investors led by BlackRock has agreed to acquire majority stakes in two key ports at either end of the Panama Canal, which was previously controlled by Hong Kong-based CK Hutchison. The $22.8 billion deal, which includes dozens of other ports worldwide, comes amid heightened concerns from the Trump administration over China's alleged influence in the region.
The acquisition addresses national security fears raised by President Donald Trump (R) and other U.S. officials who argue that China’s involvement in the Panama Canal is a threat.
The two terminals—Balboa on the Pacific side and Cristóbal on the Atlantic—handled 40% of all container traffic passing through the canal in 2024.
Since coming into office, President Trump has repeatedly expressed concerns that China could restrict American-bound shipping, and in recent months, he even suggested taking military control of the canal, arguing that the U.S. “foolishly gave it away.”
With the deal now in place, state Senator Nick DiCeglie (R) championed the decision, emphasizing its significance for U.S. foreign policy.
Florida Governor Ron DeSantis was asked about deal shortly after his 2025 State of the State address in Tallahassee.
“I think strategically getting China out of there is good. It’s good for the United States,” he affirmed Citing that it would’ve otherwise helped China “gain a strategic advantage over the United States,” the state senator added that “anytime we can reverse those trends, especially in the Panama Canal, it is good for American foreign policy.”
CK Hutchison, a global port operator controlled by billionaire Li Ka-shing, had faced pressure from U.S. and Panamanian officials to divest from the Panama ports. Though the company initially considered legal action to resist external pressure, the offer from BlackRock was ultimately too lucrative to decline. It earned CK Hutchison an estimated $19 billion in cash after adjustments for minority interests.
The deal is part of a broader geopolitical effort by the U.S. to limit China's global reach in strategic shipping routes. Panama, which had previously joined China’s Belt and Road Initiative, has since withdrawn from the program and is working to ensure the neutrality of its critical infrastructure.
