The Blubber

A pending deal involving ports near the Panama Canal has reportedly been delayed, pushing back a closing that was initially expected next week.

Former President Donald Trump has incorrectly claimed that China controls the Panama Canal. In reality, Panama has operated the canal since 1999, though China does own port infrastructure on both the Atlantic and Pacific sides of the key waterway. Trump has floated the idea of the U.S. reclaiming control of the canal, which connects the Atlantic and Pacific oceans.

The deal in question is led by BlackRock, the world’s largest asset manager with $11.6 trillion in assets under management. Announced earlier this month, the agreement was widely seen as a move to reduce geopolitical tensions. Under the deal, BlackRock would lead a consortium to acquire Hong Kong-based CK Hutchison’s controlling stakes in 43 international ports, comprising 199 berths across 23 countries.

However, China’s State Administration for Market Regulation has launched a probe into the transaction. In response to a question from the state-owned Ta Kung Pao newspaper, the regulator said it began the investigation “in accordance with the law to protect fair competition in the market and safeguard the public interest.” That same statement was later posted on the official website of China’s Hong Kong and Macao Affairs Office.

Following the announcement, CK Hutchison has reportedly decided there will be no official signing of the two Panama ports deal next week, according to the South China Morning Post, citing a source familiar with the matter.

BlackRock and CK Hutchison have not responded to requests for comment.

The 51-mile-long Panama Canal remains a vital global trade route, facilitating both cargo and military ship passage between the Atlantic and Pacific. Roughly 4% of the world’s maritime trade — and over 40% of U.S. container traffic — moves through the canal.

Tensions between the U.S. and China continue to mount. The Trump administration recently announced a new 20% tariff on all Chinese imports, with Beijing responding in kind. Additional tariffs targeting other trading partners are expected to be announced next week.

Built by the U.S. in the early 20th century and completed in 1914, the canal was operated by the U.S. for decades before control was transferred to Panama under a treaty brokered by the Carter administration — a move that faced strong Republican opposition at the time.

The canal is now central to Panama’s economy. In 2024, it generated nearly $5 billion in profit. A December report from IDB Invest found that 23.6% of Panama’s national income comes from the canal and related industries.

Despite Trump’s concerns, the Panama Canal has been managed by Panama — not China — since its handover in 1999.

Trump’s national security adviser, Mike Waltz, said last month that Panama’s leadership had entered negotiations regarding the Chinese-controlled ports flanking the canal. But that’s only part of Trump’s demands. He has also insisted that Panama stop charging fees to American vessels using the waterway.

During his first overseas trip as Secretary of State — which began in Panama — Marco Rubio echoed that sentiment, stating he supports waiving transit fees for U.S. ships.