American company buys out Chinese company for control of Panama canal ports

By Kalli Dahlberg
Two ports in the Panama Canal that were previously owned by a Hong Kong company have been bought by BlackRock, an American asset manager. Chinese ownership of the ports have been a point of contention between Panama and President Trump. The Trump administration has said –without evidence– that Chinese interests have been affecting canal operations with the US. 

BlackRock will purchase the canals for $19 Billion and has already briefed President Trump and his cabinet on the acquisition, which the administration approved of.  Trump has threatened to “take back” the canal several times in the past two months, and his threats may have played a part in the current sale. 

“China is running the Panama Canal that was not given to China, that was given to Panama foolishly, but they violated the agreement, and we’re going to take it back, or something very powerful is going to happen,” Trump said on February 2. 

The US returned the canal to Panama in 1977 but is still allowed military intervention if operations in the canal are impacted by a foreign power or internal conflict. While ships do not need to stop at the ports to pass through the canal, control over them is still very significant. The two ports in question were responsible for serving 39% of all cargo vessels in the canal last year. The other three ports are owned by companies from Taiwan, Singapore, and America- Panamanian collaborations.