‘Spineless Betrayal’: Trump’s Panama Canal Plan Leaves China Fuming – Here’s Why

Washington DC: Hong Kong-based conglomerate CK Hutchison have entered into a landmark transaction of selling a majority stake in its ports business, including assets along the Panama Canal, to a BlackRock-led consortium for $22.8 billion. The deal encompasses the sale of the Balboa and Cristobal ports, with plans for further acquisitions of 43 additional ports across 23 countries.
Notably, this transaction follows recent remarks by United States President Donald J. Trump, who pledged to "take back" the Panama Canal from Chinese influence. Historically, the Panama Canal was constructed by the United States and remained under American control until 1999, when President Jimmy Carter transferred ownership to Panama in a controversial deal.
The CK Hutchison-BlackRock deal has drawn criticism from the Chinese government, which has characterized the transaction as a "betrayal" and "spineless groveling." Ta Kung Pao, a Chinese state-backed newspaper, has condemned the deal as “an act of submission and betrayal.”

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Consequently, CK Hutchison's shares have declined by over 6% resulting in clouds of uncertainty forming and looming over the viability of the deal. Earlier, the Hutchison's share prices had shot up by 33% after the announcement of the deal with the Blackrock. 

The Panama Canal holds immense strategic and economic importance for the United States. Economically, the canal serves as a critical trade route, connecting the Atlantic and Pacific Oceans, and saving ships time, fuel, and costs. Over 14,000 vessels pass through the canal annually, generating significant revenue. Notably, more than three-quarters of all vessels passing through the canal either originate from or are destined for the United States, highlighting its critical role in facilitating American trade and commerce.
Strategically, due to its strategic position, the canal is vital for national security, enabling rapid deployment of naval vessels and troops. Its control provides the US with geopolitical leverage, influencing global trade and economic policies.