The sale of Hong Kong-based CK Hutchison's Panama ports to a BlackRock consortium has generated significant controversy. China expressed concerns that the deal could harm its national interests, while CK Hutchison maintains it is purely a commercial transaction.
Analysts highlight the US-China rivalry concerning the Panama Canal as a major factor influencing the deal. The US seeks to limit China's influence in the Western Hemisphere, particularly regarding critical infrastructure with national security implications. The Trump administration's focus on the Panama ports is linked to the significant amount of US container traffic that passes through the canal.
Domestic political pressure within Panama, along with pressure from the United States, contributed to the concessions granted to CK Hutchison for operating the ports over the decades. These pressures have mounted significantly. The article also mentions dual-use infrastructure, like the port in Chancay, Peru, as an example of areas of concern in regards to Chinese influence.
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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