China’s COSCO Eyes Stake in $23B Panama Ports Deal Shift

• Jul 29, 2025

China’s state-owned shipping giant COSCO is pushing to join a major $23 billion deal to acquire port assets owned by Hong Kong-based CK Hutchison, including key terminals on both sides of the Panama Canal. This move marks a dramatic shift in a deal once seen as a geopolitical win for the United States.

CK Hutchison, controlled by billionaire Li Ka-shing’s family, announced in March that it was in exclusive talks to sell its international port operations—excluding those in mainland China—to a consortium led by U.S. investment firm BlackRock and Mediterranean Shipping Company’s Terminal Investment Limited (TIL). The deal involves 43 ports in 23 countries, including the Balboa and Cristobal terminals that flank the Panama Canal.

Initially welcomed by the Trump administration, the deal was portrayed as a way to reduce Chinese influence near the canal. But that narrative is now being tested. In April, China’s top market regulator raised antitrust concerns, and Chinese state media criticized the deal as a threat to national interests.

In response, CK Hutchison said in a recent stock exchange filing that it may restructure the consortium to include a “major strategic investor” from China. Though the company didn’t name COSCO directly, sources told Bloomberg that the Chinese firm is seeking a significant role—possibly including veto rights—within the group.

Adding COSCO to the mix may help secure approval from Chinese regulators, but it also adds political risk. Washington has long warned against growing Chinese control near strategic global infrastructure, and COSCO’s involvement could trigger fresh opposition from U.S. lawmakers.

COSCO’s role in Latin America is already expanding. In late 2024, it opened the $3.5 billion Chancay megaport in Peru—South America’s first Chinese-operated deep-water port. The project, part of China’s Belt and Road Initiative, is designed to boost direct shipping links with Asia.

Analysts say the evolving deal highlights how business decisions are increasingly shaped by political tensions. The ports in question have been under CK Hutchison’s control since 1997, but any shift involving a Chinese state-backed firm will be closely scrutinized.

With exclusive negotiations now expired and all sides still talking, the final outcome may depend on whether the deal can satisfy both Chinese regulators and wary Western governments.