Hong Kong-based conglomerate CK Hutchison has agreed to sell its stake in two Panama Canal ports to a consortium that includes U.S. asset manager BlackRock amid pressure from the Trump administration. President Trump had raised concerns about Chinese military potential control of the strategically vital canal through the ports. CK Hutchison denied political motivations for the sale, but Trump hailed it as a victory in his address to Congress. The Panama Canal, a key shipping route, sees around 15,000 ships pass through annually, with two-thirds heading to or from the U.S. The U.S. relinquished control of the canal to Panama in 1999, with the right to defend its neutrality. Trump has claimed China controls the canal, but both China and Panama deny foreign interference, emphasizing its neutrality under Panama’s Constitution. The deal, worth $22.8 billion, would see the consortium gain control of CK Hutchison’s subsidiary Hutchison Ports, which operates globally, and Panama Ports, which manages the Balboa and Cristóbal ports at the canal entrances. The agreement, purely commercial according to CK Hutchison, does not affect the company’s ports in China. The focused interest on Panama Canal control has been a highlight of the Trump administration, with the potential impact of foreign government influences under scrutiny.
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