Trump Says U.S. Is ‘Reclaiming’ Panama Canal After American and Swiss Investors Strike Deal to Buy Chinese-Backed Ports
President Donald Trump, who had previously claimed without evidence that China controls the canal, celebrated the proposed sale as a major victory during his address to Congress.
HONG KONG — A Hong Kong-based conglomerate has agreed to sell its stake in two key Panama Canal ports to U.S. and Swiss investors amid mounting pressure from the Trump administration over concerns about Chinese influence in the region.
CK Hutchison, a corporation founded by Hong Kong billionaire Li Ka-shing, announced Tuesday that it had reached a preliminary agreement to sell its controlling stake in a subsidiary that manages the ports to a consortium that includes U.S. asset manager BlackRock.
President Trump has long argued that the Chinese-backed ports, which sit at the canal’s Pacific and Atlantic entrances, posed a national security risk by giving China potential leverage over one of the world’s most vital shipping routes.
Though CK Hutchison maintains the sale is a purely commercial transaction, Trump wasted no time framing it as a geopolitical win, declaring during his address to Congress:
“My administration will be reclaiming the Panama Canal, and we’ve already started doing it. Just today, a large American company announced they are buying both ports around the Panama Canal.”
The Strategic Importance of the Canal
Nearly 15,000 ships transit the Panama Canal each year, with about two-thirds of them either bound for or coming from the United States. Built with American investment and completed in 1914, the canal was under U.S. control until it was handed over to Panama in 1999 under a treaty negotiated by President Jimmy Carter. The U.S. retains the right to defend the canal from any threats to its neutrality.
Trump, however, has repeatedly claimed—without evidence—that China controls the canal and has suggested that military intervention might be necessary to “take it back” from Panama, one of Washington’s key allies in Latin America.
“We didn’t give it to China,” Trump told Congress on Tuesday. “We gave it to Panama, and we’re taking it back.”
Both China and Panama have denied any foreign interference in the canal’s operations.
“China supports Panama’s sovereignty over the canal and is committed to maintaining its status as a permanently neutral international waterway,” Chinese Foreign Ministry spokesperson Lin Jian said in Beijing on Wednesday.
“China has never been involved in the management or operation of the canal, nor has it interfered in its affairs,” he added.
The Business Behind the Deal
The proposed $22.8 billion acquisition, which has been discussed with both the Trump administration and members of Congress, would give the consortium—led by BlackRock and the Geneva-based Mediterranean Shipping Company—control over an 80% stake in Hutchison Ports. This company operates 43 ports in 23 countries, including the Balboa and Cristóbal ports at opposite ends of the Panama Canal.
The deal does not impact CK Hutchison’s port operations in China.
“I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” Frank Sixt, co-managing director of CK Hutchison, said in a news release.
The announcement sent CK Hutchison’s stock soaring nearly 22% on Hong Kong’s Hang Seng Index on Wednesday.
A High-Profile Focus for the Trump Administration
The issue of China’s role in global shipping and trade has been a top priority for the Trump administration. Secretary of State Marco Rubio even made Panama a key stop on his first foreign trip, underscoring the U.S. government’s focus on countering Beijing’s influence in the region.
Hutchison Ports initially secured the rights to manage the two Panama Canal ports in 1997, a bidding process U.S. officials at the time described as fair and nondiscriminatory. The company’s contract was extended in 2021 until 2047.
Despite being based in Hong Kong, a semi-autonomous Chinese territory, Trump administration officials have argued that CK Hutchison is increasingly under Beijing’s control as China tightens its grip on the city.
The pending sale still requires regulatory approval but is already being hailed as a significant shift in the geopolitical landscape.
A Knockout Move?
Just as the global market for vaping is evolving with new innovations like Mike Tyson Vape, Tyson 2.0 Disposable Vape, and Iron Mike Tyson Vape, the political landscape continues to shift with strategic economic and security decisions. The U.S. reasserting influence over the Panama Canal could be seen as a heavyweight punch in a geopolitical bout between Washington and Beijing. Whether this deal delivers a knockout blow to China’s ambitions remains to be seen.
