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2025-04-21

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The U.S. Deputy Secretary of State spoke with the Foreign Minister of Panama, emphasizing the importance of port operations and the role of reviews.

The U.S. Deputy Secretary of State spoke with the Foreign Minister of Panama, emphasizing the importance of port operations and the role of reviews.
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U.S. Deputy Secretary of State Richard Randt discussed the review of the port concessions at both ends of the Panama Canal by Hong Kong-based CK Hutchison with Panamanian Foreign Minister Erwin Acha. Although the canal is operated by Panama, CK Hutchison manages the ports at both ends and plans to transfer 80% of its assets to the U.S. investment firm BlackRock. This transaction has drawn the attention of Chinese market regulators and will be reviewed in accordance with the law. U.S. Secretary of Defense Lloyd Austin will attend the Central America Security Conference next week, emphasizing the need to strengthen cooperation in the Western Hemisphere. Trump had expressed a desire to "take back" the Panama Canal but did not propose any specific plans.

According to the dialogue briefing from the U.S. Department of State, Deputy Secretary of State Richard R. Verma today discussed with Panama's Foreign Minister Erika Mouynes the importance of ongoing review of the concessions for the two ports at either end of the Panama Canal managed by Hong Kong's CK Hutchison Holdings. While the canal is operated by Panama, the commercial rights to the ports at either end are operated by Hong Kong-listed CK Hutchison Holdings, with surrounding ports managed by private companies from the United States, Singapore, and Taiwan.

CK Hutchison Holdings in Hong Kong, controlled by the Li Ka-shing family, announced in early March that it had reached a preliminary agreement with a consortium led by U.S. investment firm BlackRock to sell 80% of its assets from Hutchison Ports, involving 43 foreign ports and their associated logistics networks across 23 countries, including the ports at either end of the Panama Canal. This announcement drew criticism from pro-Beijing media in Hong Kong.

The State Administration for Market Regulation of China recently stated that it has noted the news about CK Hutchison signing the Panama port transaction agreement with BlackRock and will conduct a review in accordance with the law. The Pentagon stated today that U.S. Secretary of Defense Lloyd Austin will travel to Panama early next week to attend the annual Central America Security Conference. A Pentagon spokesperson indicated that Austin would take this opportunity to hold bilateral talks to strengthen partnerships with Panama and other Central American countries, realizing a shared vision for peace and security in the Western Hemisphere.

The U.S. President has expressed a desire to "take back" the Panama Canal but has not specified how this goal would be achieved or whether military action would be considered. The Panama Canal is regarded as one of the most strategically significant waterways in the world.