China is reportedly threatening to derail a major multibillion-dollar deal transferring 80% ownership of over 40 port terminals—two of which are at the Panama Canal—unless its state-owned shipping giant Cosco is granted a stake.
The current purchase agreement, led by BlackRock and Mediterranean Shipping Company (MSC) alongside CK Hutchison, aims to acquire the wide-reaching port portfolio. However, Beijing has signaled it may block the deal unless Cosco is added as an equal partner.
All parties—including BlackRock, MSC, CK Hutchison, and Cosco—are reportedly open to the adjusted agreement. Yet any revised deal would need to wait until the current exclusivity period ends on July 27.
The situation has sparked political concern in the U.S., especially from national security voices worried about Chinese influence near the Panama Canal. There is increasing pressure from U.S. lawmakers to prevent Cosco’s involvement.
China has reportedly instructed its state-linked firms to pause or avoid related transactions unless Cosco’s stake is included. This marks a notable example of Beijing leveraging economic means to influence global infrastructure ownership.
🌍 Broader Impact
If China succeeds, it would secure a strategic foothold in key global ports—a move that may disturb U.S.-China trade dynamics and shift control of vital maritime chokepoints. The episode highlights how infrastructure deals are now battlegrounds in great power competition.
🔍 Interesting Fact
China has previously halted other high-profile deals deemed strategically sensitive, including a major shipping alliance that excluded Cosco—demonstrating a broader pattern of economic influence aligning with geopolitical goals.