A senior Chinese official stated that Beijing wants port participation to be part of negotiations with Washington within the framework of the trade war. While Trump called it a 'recovery' of U.S. control over the Canal, the official Chinese press compared the deal to 'handing a knife to the enemy'. The sale of the Panamanian ports of Balboa and Cristóbal, operated by Hong Kong's CK Hutchison, has stalled due to Beijing's demands, which want state-owned Cosco to have a majority stake in the consortium led by BlackRock and Swiss MSC, reported the Wall Street Journal on Wednesday. According to sources cited by the newspaper, Beijing first protested the deal, then demanded equal participation, and now threatens to block the agreement if Cosco does not get a larger share than its partners. The deal was announced after Donald Trump criticized China's growing influence over the Canal and even threatened to take control of the infrastructure, through which more than 40% of container traffic between the U.S. passes. The case has become a critical point in the turbulent ties between China and the United States. For now, the future of the deal remains up in the air, with a blockage that could change the dynamics of international trade in the region. The initial deal, announced in March, involved the sale of over 40 ports operated by CK Hutchison worldwide, including the Panamanian ones, for about $23 billion. The White House has deemed Chinese control over the Panama Canal ports 'unacceptable', warning that this could pose a risk to U.S. national and economic security. Mid-year, Cosco demanded veto power over decisions contrary to its interests to secure Beijing's approval for its entry into the consortium, reported Bloomberg. 'The deal is now in an irresolvable deadlock,' sources said. Analysts note that Beijing has influence over the involved companies, as both BlackRock and CK Hutchison have business in China, and MSC is one of the main carriers of Chinese exports to the world and Asia.
China stalls deal for Panama Canal port sale
Beijing demands a controlling stake for Cosco in the $23 billion port sale deal, threatening to block the agreement and escalating the U.S.-China trade conflict.
