Posted on April 7, 2025
A senior United States official has discussed the importance of an ongoing audit of CK Hutchison’s management of two ports at the Panama Canal with the country’s foreign minister, amid controversy surrounding the Hong Kong company’s sales of the facilities.
Panamanian authorities announced their audit of Hong Kong tycoon Li Ka-shing’s CK Hutchison in January after US President Donald Trump declared his intention to take back the Panama Canal, which he claimed was under China’s control.
The row soon escalated after CK Hutchison surprised markets in March by announcing it was selling all its overseas port operations, including the two in Panama, to a group led by investment firm BlackRock in a deal worth US$23 billion.
The deal also drew the ire of Beijing, which later said it would launch an antitrust probe into the arrangement.
On Friday, US Deputy Secretary of State Christopher Landau spoke with Panamanian Foreign Minister Javier Martinez-Acha on further advancing ties between the two countries, while also addressing the issue of the port deal.
“The deputy secretary also recognised Panama’s actions in curbing malign [influence of the Communist Party of China] and discussed the importance of Panama’s ongoing audit of Hutchison’s management of concessions of two ports at either end of the Panama Canal,” US State Department spokeswoman Tammy Bruce said on Friday.
“The deputy secretary and the foreign minister pledged to work closely to support the safety, security, and prosperity of United States and Panama.”
The Pentagon also said on Friday that US Defence Secretary Pete Hegseth would visit Panama to participate in a series of bilateral meetings in driving efforts to strengthen Washington’s partnership with the country and other Central American nations.
Last month, China’s State Administration for Market Regulation said it would launch an antitrust probe into CK Hutchison’s deal with BlackRock, after Beijing’s key offices repeatedly signalled their wrath over the transactions said to be harming the national interest.
Both parties have not signed any agreements so far, despite the deal’s definitive documentation being initially expected to be signed by last Wednesday.
In January, Panamanian Comptroller General Anel Flores said the concession’s terms in Hutchison’s contract were economically disadvantageous for the country, comparing them with a “colonial enclave” perpetuating inequality, despite the significant growth in container traffic through the canal.
The Panamanian arm of Hutchison Ports had said at the time that it was “fully cooperating and maintaining due transparency” with local authorities during the audit.
