Devil in the details of the Hutchison-BlackRock Panama ports deal | South China Morning Post


The sale of CK Hutchison's Panama ports to a BlackRock consortium sparks debate, involving geopolitical tensions between the US and China and domestic Panamanian politics.
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A sale by Hong Kong-based CK Hutchison of its overseas ports, including two in Panama, to a BlackRock consortium continues to stir debate as to its eventual outcome. China has expressed unhappiness, suggesting the deal would hurt national interest, while CK Hutchison has said the transaction is purely commercial. In a two-part special, we speak to insiders on how the trifecta of geopolitics, the domestic politics of Panama and changes in the port business influenced CK Hutchison. This first part looks at the geopolitical and domestic dimensions of the sale. The second part looks at the evolving port business.

The concessions obtained by Hong Kong-based CK Hutchison Holdings to operate the two Panama ports were never free from politics from the outset and over the decades, pressure had mounted domestically in Panama and from the United States, said analysts and a former US official.

American national security analysts also told the Post the rivalry between the US and China over the Panama Canal had revealed the extent of American determination to advance its own interests and reduce China’s presence within the Western hemisphere, especially for critical infrastructure used for national security and military purposes.

Andres Martinez-Fernandez, senior policy analyst for Latin America at the Heritage Foundation’s Allison Centre for National Security, said US President Donald Trump had focused on the ports in Panama “because of the vital importance of the canal for the US, where over a third of its container traffic flows through”.

He added that the Trump administration “looks broadly at the Chinese presence in the Western hemisphere as an issue of concern”.

“That is going to be particularly the case when we’re talking about critical infrastructure and potentially dual-use infrastructure, which includes the port in Chancay, which is in Peru”, he said.

Dual-use infrastructure refers to that which serves both civilian and defence needs.

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