The Panama Canal – a narrow but vital waterway linking the Atlantic and Pacific Oceans – has long been more than just a trade route. It is a geopolitical fulcrum, a commercial artery essential to US economic and strategic interests, and a site of growing rivalry between the United States and China. A recent move by American investment giant BlackRock to acquire control over two key ports near the canal from Hong Kong-based CK Hutchison Holdings was initially hailed as a win for US national security. However, China’s demand to insert a state-owned shipping titan, COSCO, into the deal threatens to derail these efforts and reflects the broader struggle over maritime influence and global power.

Roughly 70 percent of the cargo moving through the Panama Canal is US-bound or US-originated. It is no exaggeration to say that the canal’s smooth operation is central to America’s trade and military mobility. Recognizing this, President Donald Trump, in his return to the White House, has prioritized efforts to reduce Chinese influence in the region. Under pressure from Washington, Panama withdrew from China’s Belt and Road Initiative (BRI) in February 2025 – a significant symbolic break from Beijing’s expanding influence in Latin America.

Just weeks later, CK Hutchison announced it would divest from over 40 ports worldwide, including the two near the canal, transferring them to a consortium led by BlackRock. President Trump publicly championed the deal as a major foreign policy success, framing it as part of his broader effort to “reclaim” America’s strategic assets. The message was clear: US control of........

© Blitz