BlackRock, the U.S. asset management giant, has agreed to purchase two strategic ports at both ends of the Panama Canal from a Hong Kong-based company. This acquisition comes amid controversy stirred by U.S. President Donald Trump, who has voiced his discontent over China’s presence in the region.
Trump has repeatedly stated, both before and after taking office, his intention to “take back” the Panama Canal, which was transferred to the Panamanian government in 1999 under a treaty negotiated with the United States two decades earlier. According to Trump, Chinese ownership of some port operations signaled China’s growing influence over the interoceanic waterway. During his inauguration speech, he declared, “China is running the Panama Canal. We didn’t give it to China; we gave it to Panama, and we’re going to take it back.” In a pre-inauguration press conference, he even suggested that he would not rule out the use of military force or economic coercion to regain control of the canal.
The agreement announced on Tuesday stipulates that BlackRock and a consortium of investors will spend $22.8 billion to acquire the ports of Balboa and Cristóbal, located at each end of the canal, from Hong Kong-based CK Hutchison. The transaction has been described as a “preliminary agreement.” Additionally, the consortium will acquire a majority stake in 43 additional ports, comprising 199 berths across 23 countries, though no ports located in China or Hong Kong are included in the deal.
BlackRock CEO Larry Fink highlighted the significance of the acquisition: “These world-class ports drive global growth. Through our deep relationships with organizations like Hutchison and governments around the world, we have become the go-to partner for those seeking stable, long-term capital. We are delighted that our clients can participate in this investment.”
BlackRock is one of the world’s largest asset managers, overseeing a massive $11.6 trillion fund, approximately 40% of the United States’ Gross Domestic Product (GDP). Unlike some conglomerates, BlackRock does not directly control many companies, but it is the second-largest shareholder in corporate giants such as Walmart, Apple, Amazon, Microsoft, and Alphabet, Google’s parent company.
The Panama Canal was built by the United States in the early 20th century and became operational in 1914. For nearly a century, it was managed by the U.S. before President Jimmy Carter negotiated its transfer to Panama under a controversial treaty, opposed by many Republicans at the time. Since its handover in 1999, the canal has been exclusively operated by Panama, without Chinese control, despite Trump’s claims.
So far, the White House has not issued any comments on BlackRock’s purchase. However, this transaction could ease Trump’s concerns about Chinese influence over the strategic waterway. Mike Waltz, a national security advisor to the government, recently stated that Panamanian authorities had entered into “negotiations regarding the management of the ports on both sides of the canal.”
