Recently, Donald Trump said that America made the Panama Canal and joined the two axes of the world. He said it’s a shame that American interests do not control the canal. Now, American asset management firm BlackRock has agreed to buy two ports at either end of the Panama Canal from a Hong Kong-based firm.
Trump has said several times that he wants the Panama Canal to be an American occupation, and he cited Chinese ownership of some of the ports as a sign that China is running the things in Panama Canal.
At a January press conference ahead of his inauguration, Trump had said that he intended to take back the control of the canal either by military force or economic coercion. Moreover, during his inaugural speech, Trump said, “China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back.”
According to the deal made by BlackRock, they plan to spend around $22.8 billion to buy the ports of Balboa and Cristobal, which are present on either end of the canal, from CK Hutchison, a Hong Kong-based company. The company said that as part of the agreement, it will also buy the controlling interest of CK Hutchison in 43 ports comprising 199 berths in 23 countries, but none in China or Hong Kong.
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The CEO of BlackRock, Larry Fink also made a statement regarding the deal and said, “These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled that our clients can participate in this investment.”
