Last week, China demanded to be included in the ownership of the canal’s ports through state-owned Cosco—now there is yet another demand on the table.
The state-owned Chinese shipping company Cosco is pushing to join the new ownership group set to take control of the key ports in the Panama Canal.
Additionally, the company is seeking veto rights, reports Bloomberg News, citing unnamed sources.
The goal is to ensure that Cosco—and thereby China—can block decisions that go against Chinese interests. According to the outlet, Beijing is prepared to block the pending acquisition deal if Cosco is not given a seat at the table and the accompanying power.
The Chinese port operator CK Hutchison previously held 90% of Panama Ports Company, which operates two port terminals along the canal. However, under pressure from U.S. President Donald Trump, the ports have been put up for sale.
A consortium led by BlackRock, which also includes the major Swiss-Italian shipping company MSC, is poised to take over the ports. The Wall Street Journal has previously reported that the parties are open to bringing Cosco on board.
Since the start of his second term, Trump has pressured Panama, accusing it of being under Chinese control. This has led the president to threaten reclaiming the Panama Canal. The U.S. relinquished control of the canal to Panama itself in 1999.
Since then, according to the president, China has taken over the canal. Bloomberg News reports that pressure from Trump prompted the Panamanian government to consider terminating its agreement with CK Hutchison.
.\˙ MarketWire