China Blocks $22.8 Billion Sale of Panama Canal Ports to US Consortium

China has blocked a significant deal that would have transferred control of two crucial ports at the Panama Canal from Hong Kong-based CK Hutchison Holdings to a U.S.-led consortium headed by BlackRock. The $22.8 billion transaction was intended to alleviate concerns over Chinese influence in a vital shipping route, which President Trump has criticized as a national security threat. China's State Administration for Market Regulation initiated an investigation into the deal, reportedly due to internal disagreements over the sale, with President Xi Jinping upset that he was not consulted beforehand. This move has raised tensions between the U.S. and China, as the latter has accused Washington of employing coercive tactics to undermine its Belt and Road Initiative in Latin America. The stalled deal comes amid broader geopolitical conflicts and heightened scrutiny on China's international investments. Trump's administration has emphasized the strategic importance of reclaiming influence over the Panama Canal, a vital trade artery historically controlled by the U.S.