Delays Likely for Panama Ports Transfer Deal

A deal transferring control of two Panama Ports transfer deal to a U.S.-led investor consortium, including BlackRock, may be delayed beyond the original April 2 deadline. Sources familiar with the matter indicate that additional time is required before finalizing the transaction.

Criticism and Praise from Global Leaders

The agreement has drawn both praise and criticism on the global stage. U.S. President Trump has applauded the move, while Chinese state-run media have criticized it due to the seller, Hong Kong-based CK Hutchison. The deal, valued at $23 billion, involves the sale of key ports at either end of the Panama Canal.

China’s Regulatory Scrutiny

China’s antitrust authority announced a review of the deal to ensure fair competition and safeguard public interests. This move follows President Trump’s March 4 congressional address, where he criticized Chinese influence over the canal, declaring, “We’re taking it back.”

Beijing’s Response and Potential Obstacles

China’s President Xi Jinping has reportedly sought ways to obstruct the deal, with Chinese officials signaling potential regulatory challenges. Some sources suggested that these delays might only be temporary and do not signal the end of the agreement. Beijing’s efforts could aim to force a reassessment or delay the deal further.

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Impact on U.S.-China Relations

Analysts believe that blocking the deal could backfire on China, risking further tensions with the Trump administration. While President Xi has assured global CEOs of China’s commitment to foreign business, blocking a deal not involving Chinese or Hong Kong ports could damage China’s international reputation.

Expert Opinions on the Deal’s Viability

Kurt Tong, a former U.S. diplomat, argued that the deal does not pose legal issues for China and emphasized that Panamanian law governs port operations. He acknowledged that while the deal is symbolic for the U.S., China’s reputation could suffer if American investors gain control of the ports.

Shipping Firms Prepare for Post-Deal Operations

Sources close to the transaction reveal that Chinese shipping firms, including Mediterranean Shipping Co. (MSC), are in talks to manage some Hutchison ports. MSC’s owner, Diego Aponte, was involved in BlackRock’s bid. As the world’s largest container shipping operator, MSC has extensive global operations.

Negotiation Window and Potential Future Offers

Hutchison and BlackRock have 145 days to negotiate exclusive terms before Hutchison can entertain other offers. While the exact start date for this window remains undisclosed, the deal remains under close scrutiny, especially regarding BlackRock’s operations in China.

The Deal’s Significance in U.S.-China Tensions

Any significant attempt by Beijing to derail the deal could escalate tensions with the Trump administration. Chinese officials appear determined to exert pressure on Hutchison and BlackRock, though many analysts expect the deal to proceed despite these challenges.

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