February
2025
The Hong Kong-based conglomerate CK Hutchison announced that it would sell its controlling stake in the Panama Canal’s operating unit to a group of investors led by American investment firm BlackRock. This move follows recent pressure from the U.S. government to curb perceived Chinese influence in Central and South America, ending CK Hutchison’s 20+ year history of operating ports in the Panama Canal. BlackRock and its consortium of investors, which includes Global Infrastructure Partners and Terminal Investment, will gain 90% stake in the port operation company formerly controlled by CK Hutchison.
Summary
The pressure applied to CK Hutchison by the Trump administration reflects the growing pressure on companies to ‘choose sides’ in the competition between the United States and the People’s Republic of China. Though CK Hutchison has taken significant steps to limit its China exposure and has no financial ties to the Chinese government, its status as a Hong Kong firm and its links to Hong Kong billionaire Li Ka-shing mean that it remains subject to some form of Chinese oversight. The success of the pressure campaign against CK Hutchison likely means that the Trump administration will be emboldened to apply further pressure against companies that are believed to be potential vectors of Chinese influence in the Americas.
Analysis
