Trump Touted His Panama Victory, But China May Scuttle It

A huge deal President Donald Trump touted as a victory in his campaign to “take back” the Panama Canal from China could be on the rocks amid pushback from Beijing, Mithil Aggarwal reported for NBC News.

Panama has opened an investigation into a contract granted to CK Hutchison for the operation of two ports. I Photo: Mariordo (Mario Roberto Durán Ortiz) Wikimedia Commons

The $23 billion sale involving two ports run by CK Hutchison—a private company based in Hong Kong—to a consortium led by the U.S. investment firm BlackRock had been scheduled to be signed last week.

But the agreement has been delayed under pressure from China, whose market regulator launched a review of the deal as state-run newspapers attacked it for undermining China’s national interests.

In January, Trump claimed—without providing evidence—that China controlled the 50-mile canal and vowed that the U.S. would “take back” the waterway, which he said was “vital” to national security.

The Panamanian government has administered the U.S.-built canal since the United States relinquished it in 1999.

A subsidiary of the Hong Kong conglomerate at the center of U.S.-China tensions over Panama Canal port assets has denied allegations that it had failed to pay about $1.2 billion to the Central American country, Kanis Leung reported for the Associated Press (AP).

Panama has opened an investigation into a contract granted to CK Hutchison for the operation of two ports, Attorney General Luis Carlos Gomez said. The announcement followed criticism of the contract—renewed in 2021—by Panama's comptroller general.

Comptroller Anel Flores said Panama “left $1.3 billion on the table,” referring to tax incentives and benefits granted by the government to CK Hutchison, Elida Moreno reported for Reuters.