The ports of the Panama Canal face a potential sale to a consortium, but the Chinese state also wants a slice of the pie through Cosco.
The Chinese government is pushing for co-ownership as the ports along the Panama Canal are expected to change hands soon, reports *The Wall Street Journal*.
Specifically, China wants the state-owned shipping company Cosco to acquire a stake in the ports, which are currently set to be sold to a consortium led by BlackRock. According to the report, the Chinese government is prepared to block the deal unless Cosco gets a seat at the table.
The Chinese port operator CK Hutchison previously held a 90% stake in Panama Ports Company, which operates port terminals in the Panamanian cities of Balboa and Cristóbal. However, under pressure from U.S. President Donald Trump, the ports were put up for sale.
BlackRock, MSC, and Hutchison are all open to including Cosco in the ownership group, *The Wall Street Journal* writes, citing anonymous sources.
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 in 1999.
Since then, according to the president, China has taken over the canal. The pressure from Trump reportedly prompted the Panamanian government to consider terminating its agreement with CK Hutchison, *Bloomberg News* reported.
However, sources familiar with the negotiations say it is unlikely the parties will reach an agreement before the previously set deadline for exclusive talks between BlackRock, MSC, and Hutchison expires on July 27. *The Wall Street Journal* notes that no deal involving Cosco can be finalized before the exclusivity period ends.
.\˙ MarketWire
