Hong Kong-based CK Hutchison Holdings has announced plans to sell a majority stake in Panama Ports Company (PPC) to a group of investors, including US financial giant BlackRock, in a deal worth nearly $23 billion.

Last month, Trump vowed to reclaim control, stating, “China is operating the Panama Canal… we’re taking it back.”

PPC holds the contract to operate the Balboa and Cristóbal ports until 2047. The sale of a 90% stake in the company is part of a larger restructuring of Hutchison Port’s global operations. However, the timing of the deal coincides with increasing pressure from former US President Donald Trump to reduce China’s influence over the Panama Canal.

The move follows a visit to Panama City last month by US Secretary of State Marco Rubio. During discussions with Panamanian President José Raúl Mulino, Rubio declared that any form of control by the Chinese Communist Party over the Panama Canal was “unacceptable,” vowing that the US would take “necessary measures to protect its rights.”

Despite the political backdrop, CK Hutchison maintains that the transaction is purely commercial. “I want to emphasize that this deal is entirely business-driven and unrelated to recent political developments,” said Frank Sixt, co-managing director of CK Hutchison.

Political and Economic Implications

Many in Panama remain skeptical. The country has recently accepted third-country migrants deported from the US under an agreement brokered by Rubio and has approved a controversial dam project aimed at improving the water supply for the Canal—moves seen as aligning with US interests.

Mauricio Claver-Carone, Trump’s former special envoy to Latin America, previously warned that Panama’s failure to maintain adequate water levels in the Canal could render it “obsolete,” further increasing tensions over its management.

“Trump never intended to take the Canal by force. He applied pressure where it hurt—on Panama’s economic lifeline,” said Nehemías Jaén, a former Panamanian diplomat. “Every concession made by Panama is a win for him.”

Public Reaction and Potential Fallout

Few Panamanians will mourn the exit of Panama Ports. Viral clips of the country’s comptroller general have revealed that the company failed to pay any fees to the government over the last three years, fueling public frustration.

“This is a positive step for Panama and global trade,” said Mario Perez Balladares, a transshipment company director, who expects port container volumes to rise following the decision.

However, the sale could have long-term consequences for Panama’s image as an investment hub. Just days before the deal was announced, Panama’s attorney general deemed the Balboa and Cristóbal port contracts unconstitutional, raising the possibility that the Supreme Court might annul them. With the ports now under US ownership, legal action seems unlikely, reinforcing concerns that Panamanian institutions bow to US influence rather than upholding their own laws.

“This sends a troubling message about Panama’s ability to enforce investor protections,” Jaén warned. “Panamanians don’t want to be seen as a US colony again.”