🚢 China Threatens to Block $23 Billion Panama Ports Deal Over Cosco Exclusion

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On July 17, 2025, Chinese authorities warned they may block the proposed $23 billion sale of more than 40 global seaports—including key facilities near the Panama Canal—if Cosco Shipping, China’s state-owned maritime giant, is excluded from the transaction.

The deal involves Hong Kong-based CK Hutchison Holdings, which announced in March its intention to sell an 80% stake in its ports business to a consortium led by BlackRock and Mediterranean Shipping Company (MSC). The portfolio spans 43 ports across 23 countries, with an enterprise value of $22.8 billion, including debt.

⚠️ Beijing’s Position

Chinese officials have reportedly informed all parties—CK Hutchison, BlackRock, and MSC—that failure to include Cosco could prompt Beijing to intervene and block the sale. Regulators have also instructed state-owned enterprises to suspend future dealings with Hutchison or its affiliates.

🌍 Geopolitical Implications

The sale has drawn attention from U.S. President Donald Trump, who has described the deal as a strategic move to reduce Chinese influence around the Panama Canal, calling it a “reclaiming” of the waterway. Chinese media have criticized the transaction as a hegemonic act by the U.S. aimed at curbing China’s global maritime reach.

🔄 Negotiation Status

While BlackRock, MSC, and Hutchison are reportedly open to Cosco taking a stake, no agreement is expected before the July 27 deadline for exclusive talks between the original parties.

The dispute underscores rising tensions in global trade and infrastructure investment, with the Panama Canal emerging as a focal point in the broader U.S.-China strategic rivalry.