US Secretary of Defence Pete Hegseth will travel to Panama early this week as Washington increases pressure on the Central American nation for alleged Chinese influence over its famous canal.
President Donald Trump has repeatedly threatened to retake control of the Panama Canal, the 110-year-old waterway that handles around 5 per cent of global maritime trade, alleging that a concession for two ports at either end held by Hong Kong-based conglomerate CK Hutchison posed a national security risk.
In response to the US pressure, an investor group led by BlackRock offered to buy CK Hutchison’s ports division, which holds the concession, in a deal worth some $22.8bn. However, Chinese authorities are reviewing the transaction, casting doubt on whether it will be completed.