China’s top market regulator has launched an antitrust review of CK Hutchison’s potential Panama Canal ports deal. The State Administration for Market Regulation (SAMR) confirmed the decision on Friday. The regulator aims to ensure fair market competition and safeguard public interests.
A spokesperson from the second antitrust enforcement division of SAMR responded to inquiries from Hong Kong media agency Ta Kung Wen Wei. The spokesperson acknowledged the deal and confirmed the regulator’s intention to conduct an antitrust review.
Figure 1: The port of Balboa included in the Panama Canal ports deal
CK Hutchison’s Global Ports Business Sale
Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings, is reportedly preparing to sell most of its global ports business. The sale, expected to raise $22.8 billion, involves a deal with BlackRock, the world’s largest asset manager. BlackRock manages assets worth $11.6 trillion globally.
The sale includes 43 ports across 23 countries, comprising 199 berths. It has been viewed as a strategic move to ease regional tensions.
FIgure 2: Hutchison Ports expected to raise $22.8 billion involving a deal with Black Rock
Delayed Signing Amid Chinese Regulatory Scrutiny
Chinese antitrust regulators have launched an investigation into the deal, delaying its closure. CK Hutchison initially scheduled the official signing for April 2. However, the South China Morning Post reported that the company decided against proceeding with the signing next week.
The investigation follows pressure from Chinese authorities, with state-owned firms advised to hold off on transactions linked to CK Hutchison. Bloomberg News reported that Chinese regulators instructed state-owned firms to avoid deals involving tycoon Li Ka-shing’s companies.
Political Tensions and U.S. Interests
U.S. President Donald Trump expressed concerns over Chinese influence near the Panama Canal. Trump inaccurately claimed China controls the canal, which remains under Panama’s administration since 1999. The canal earned nearly $5 billion in total profits in 2024. According to a December study by IDB Invest, 23.6% of Panama’s annual income comes from the canal and related services.
The U.S. has historically viewed the canal as a strategic asset. Republican leaders opposed the 1977 treaty negotiated by President Jimmy Carter to transfer control to Panama. The U.S. constructed the 51-mile canal, completed in 1914, and operated it until the handover.
BlackRock’s Strategic Interests
The BlackRock-led consortium aims to acquire CK Hutchison’s controlling interest in the two strategic ports near the Panama Canal. The acquisition forms part of a broader deal involving 43 ports worldwide. Analysts believe BlackRock’s participation in the deal could contribute to regional stability.
The South China Morning Post reported that CK Hutchison’s decision to delay the signing does not signify the cancellation of the deal. Sources close to the company stated that the agreement remains under negotiation.
Figure 3: The BlackRock deal could contribute to regional stability
Chinese Media Opposition to the Deal
Pro-Beijing Hong Kong newspaper Ta Kung Pao published an editorial piece on March 21, criticising the transaction. The editorial described the deal as aligning with the U.S. strategy to contain China.
The Chinese regulator’s scrutiny highlights ongoing tensions between Beijing and Washington. The Trump administration recently imposed new tariffs of 20% on all goods imported from China. China responded with retaliatory measures, heightening the standoff.
Trump’s Position on the Panama Canal
Trump has emphasised the strategic importance of the canal. National Security Adviser Mike Waltz said Panama engaged in negotiations concerning the ports. Trump’s administration has demanded that Panama waive fees for U.S. vessels transiting the canal.
Republican Senator Marco Rubio supported the demand, arguing that U.S. vessels should not pay fees. Rubio stated that the U.S. bears an obligation to protect the canal during conflicts.
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CK Hutchison’s Historical Presence in Panama
CK Hutchison has operated two of the five ports adjacent to the Panama Canal since 1998. Panama extended the concession for another 25 years in 2021.
The conglomerate spans diverse sectors, including telecommunications and retail. Analysts estimate the sale could generate over $19 billion in cash for CK Hutchison.
Future Prospects and Regulatory Hurdles
CK Hutchison’s decision to delay the signing reflects ongoing regulatory challenges. Analysts suggest the antitrust review could reshape the future of the deal.
The strategic importance of the Panama Canal remains a focal point for U.S.-China relations. CK Hutchison and BlackRock have yet to comment publicly on the investigation or potential adjustments to the agreement.
The situation continues to unfold as Chinese regulators maintain scrutiny over the transaction.
