China is threatening to derail a $23 billion deal that would hand over control of more than 40 global ports — including two at the Panama Canal — to BlackRock and Mediterranean Shipping Co. (MSC), unless its state-owned shipping giant COSCO is granted a stake, the Wall Street Journal reported.
The ports, currently owned by Hong Kong-based CK Hutchison, have drawn Beijing’s ire over an agreement excluding COSCO. Chinese officials have warned BlackRock, MSC and Hutchison that failure to include COSCO would trigger regulatory or political retaliation — leveraging China’s economic influence and control over approvals for foreign mergers. “China is pushing for state-owned Cosco to be an equal partner and shareholder,” WSJ reported, citing sources familiar with the talks.
President Donald Trump has already objected to Hutchison’s control of Panama Canal ports and recently threatened to “take back” the canal, accusing Panama of violating the treaty that transferred U.S. control. While BlackRock and MSC had initially signed an exclusive deal with Hutchison in March, all parties are reportedly now open to COSCO’s involvement — though no final agreement can be struck before the exclusivity window closes on July 27.
This standoff adds to U.S./China tensions, with Chinese officials raising the COSCO stake issue during recent trade talks in Switzerland. Beijing previously ordered Chinese state-owned firms to suspend new business with Hutchison and its controlling shareholder.
The deal’s fate now hangs on whether Western firms will yield to Beijing’s demand — or risk escalating confrontation over control of one of the world’s most strategic maritime chokepoints.
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