Guan Cha Zhe Wang·2025-12-18 07:40Core Viewpoint - The article discusses the stalled sale of Hong Kong's CK Hutchison Holdings' controlled ports in Panama, highlighting China's demand for majority control by COSCO in the transaction, which has led to tensions with the U.S. and involved regulatory scrutiny from Chinese authorities [1][2][4]. Group 1: Transaction Details - CK Hutchison Holdings reached a preliminary agreement to sell its interests in 199 port berths across 43 ports in 23 countries, including key ports at both ends of the Panama Canal, valued at $22.8 billion [1]. - The deal is led by a consortium headed by BlackRock, which has faced pushback from Chinese authorities demanding that COSCO must obtain majority ownership for the transaction to proceed [1][4]. - The transaction has been described as complex and is expected to take until 2026 to complete, according to CK Hutchison's management [8]. Group 2: Regulatory and Political Context - Chinese regulatory authorities have intervened, asserting their right to review the transaction under antitrust laws, citing potential impacts on China's domestic market and supply chain security [4][7]. - The U.S. has expressed strong opposition to China's influence in the Panama Canal, with the White House stating that it cannot accept China's demands for control over the ports involved in the sale [2][5]. - The article notes that previous instances of Chinese regulatory intervention in international mergers have set a precedent for scrutiny in this case, emphasizing the importance of maintaining fair competition [4][5]. Group 3: Strategic Importance of the Panama Canal - The Panama Canal is crucial for U.S. container shipping, with over 40% of U.S. container cargo passing through it, highlighting its strategic significance in global trade [8]. - The Panama Canal Authority is also planning to sell land on both sides of the canal for development into container ports, which is expected to attract bids from major global shipping companies [8].