BlackRock secures Panama Canal ports, upsetting China

BlackRock's CEO, Larry Fink, has secured a $22.8 billion deal for two key ports at the Panama Canal. This deal has pleased former President Trump, but it has upset Chinese leaders, particularly Xi Jinping. The ports are currently owned by CK Hutchison, a Hong Kong company, which did not seek approval from the Chinese government for the sale. Chinese officials see these ports as important to their negotiations with the U.S. and are unhappy about losing control. State media have criticized CK Hutchison for prioritizing profit over national interests. They claim that Chinese ships might face restrictions in the canal due to this deal. The arrangement is now under scrutiny by Chinese authorities. They are looking for any potential security or antitrust issues related to the deal. The final approval is still needed from various regulators, and the companies involved hope to complete the agreement by April 2. Analysts warn that if the deal falls through, BlackRock might suffer a hit to its stock price and its credibility in the infrastructure sector. Fink has clarified that BlackRock is not buying the entire Panama Canal, just the two ports, which represent a small part of a much larger global port deal involving 43 ports in 23 countries. CK Hutchison’s chairman, Victor Li, acknowledged the rising geopolitical tensions affecting their business. The company did not specifically mention the ports deal in its latest earnings report, but it recognized that the market environment may be unpredictable this year.