US, China Raise the Stakes in Panama Canal Row

Beijing says antitrust regulators will review deal after US-led group buys ports

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HONG KONG - China's fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say.

Hong Kong conglomerate CK Hutchison in March sold 43 ports in 23 countries — including operations in the vital Central American canal — to a group led by giant asset manager BlackRock for US$19 billion (S$25 billion) in cash.

After two weeks of rhetoric, Beijing hardened its response on March 28 and confirmed that antitrust regulators will review the deal, likely preventing the parties from signing an agreement on April 2 as planned.

Speaking before the review was announced, experts told AFP that the deal allowed US President Donald Trump to claim credit for "taking back" the canal as part of his "America First" agenda.

"The US (created) a political issue at China's expense and then has been able to declare victory," said Mr Kurt Tong, managing partner at The Asia Group and a former top US diplomat to Hong Kong.

"That doesn't feel good in Beijing."

Some of the ports being sold are in nations that participate in Beijing's Belt and Road Initiative (BRI) — a global development framework championed by Chinese President Xi Jinping.