New Evidence Supports Trump’s Claims About Chinese Influence Over the Panama Canal
China’s attempts to prevent the sale of a company that operates Panama Canal ports are validating President Donald Trump’s concerns regarding this strategically important waterway.
Trump and his associates caution that Beijing’s influence over Hong Kong-based CK Hutchison, which manages two of the ports, could hinder US military and commercial shipping through the canal in the event of a conflict between the US and China.
This national-security risk places the United States (and the West) in a precarious situation, prompting the president to assert his intention to “take back” control of the canal.
Hutchison subsequently sought to sell its canal operations to a consortium led by US-based BlackRock — a significant victory for Trump — in a deal scheduled to be finalized on Wednesday.
However, a state-run Hong Kong news agency accused Hutchison of “betraying” the Chinese populace on March 13.
Just last week, Chinese officials suspended all new agreements between state-owned enterprises and companies associated with Hutchison’s primary owner, Li Ka-shing.
Then, on Friday, Beijing halted the signing for the time being, announcing a government review of the transaction.
In essence: China’s leaders appear intent on maintaining control over this critical maritime route — whether to threaten US access to the essential shipping lane or to guarantee it remains open for Chinese vessels at all costs.
Beijing might reconsider if it recognizes that its aggressive stance in Hong Kong’s trade market will deter more companies from setting up operations there — yet another move towards undermining the status of what was once a global financial hub.
Chinese authorities and their subpar Hong Kong representatives have already made significant progress in this direction, with the suppression of democratic dissent, the shutdown of Hong Kong’s well-regarded Apple Daily (a publicly traded entity), and the inept show trials of its leader, Jimmy Lai, along with several employees — all showcasing that the rule of law, which once made the city appealing for business, is now extinct.
If Beijing ultimately decides to permanently obstruct the Hutchison sale, it will undoubtedly accelerate the exodus of businesses from Hong Kong — and may still risk losing the canal ports, as Panama’s government might force the matter.
In the meantime, this situation has already substantiated Team Trump’s argument: If China is so concerned about who controls the canal, perhaps we should be as well.