In early March, President Trump hailed an American BlackRock-led consortium’s purchase of two ports in Panama controlled by Hong Kong-based CK Hutchison’s (CKH). The total deal, valued at $22.8 billion, included CKH Group’s operations in 43 ports across 23 countries, including two in Panama. President Trump had previously vowed to assert American dominance over the Panama Canal and claimed that China controlled the canal.

The Chinese Communist Party (CCP) stalled the deal by initiating an investigation into potential violations of Chinese anti-monopoly laws. CCP President Xi is angry that CKH’s president, 96-year-old billionaire Li Ka-shing, did not consult with Beijing before making the deal. A Chinese newspaper, Ta Kung Pao, condemned the sale as a betrayal of all Chinese people and in perfect cooperation with US strategy to contain China and cause endless harm. The sale could be a violation of national security laws.

BlackRock, founded by Larry Fink in 1988, is the world’s largest asset management firm with over $11 trillion under management. CKH is a Hong Kong-based conglomerate established by Li Ka-shing, who fled communist China as a young man. He started with a small plastic flower company that is now CHK, with sales exceeding $60 billion in real estate, port operations, retail, and telecommunications across more than 50 countries.

Panama is investigating the CKH contract for the operation of two Canal ports: Balboa at the Pacific Ocean entrance and Cristobal at the Atlantic Ocean side for violations and tax evasion. Panama’s Controller, Anel Flores, said Panama left $1.3 billion on the table in contract negotiations. The contract was renewed in 2021 for a 25-year term.

US Secretary of State Marco Rubio visited Panamanian President Jose Mulino in January 2025 and discussed US concerns over Chinese control over the Canal. Mulino rejected the claim of Chinese control. Shortly thereafter, Panama withdrew from the Belt and Road Initiative, earning condemnation from the CCP.

Summary

The Trump tariff war with China has yet to play out, but certainly, the CKH-BlackRock port deal and the Panamanian government investigation of the port contract will be significant factors.
Action
1. The US should rescind the May 2013 Obama/Biden Memorandum of Understanding (MOU), which granted CCP companies unique and privileged access to US capital markets. Thus far, over $2 trillion has been raised from American investors to develop China’s industrial/military complex.
2. Support Panama in investigating CKH malfeasance on the port contracts.
3. Demand that the CCP allow CKH to complete the deal with BlackRock.
Reciprocity should be the foundation of US foreign policy.

Peace Through Strength!