Editorial | Hutchison’s exit from Panama ports signals a sad state of affairs
President Donald Trump’s boast to Congress that the US had taken the canal back dispelled any notion that the sale was purely for commercial reasons
A false claim pushed by US President Donald Trump that China controls the Panama Canal has resulted in global port operator CK Hutchison Holdings selling control of most of its docks, including two near the canal.
Hutchison framed the deal with an American consortium, which excludes ports in Hong Kong and mainland China, as a purely commercial move – one that generated US$19 billion in cash and sparked a surge in its share price.
But although the Panama operations are a tiny contributor to Hutchison’s earnings, the move is clearly aimed at mitigating a sudden increase in perceived geopolitical risks sparked by United States pressure.
Trump demanded control of the canal be returned to the US, which built and operated it for many years until transferring sovereignty to Panama. He did not rule out the use of force.
It amounted to intimidation of legitimate business operations that prompted analysts to warn other major China-related companies against unparalleled uncertainties amid an unfolding US trade war.
There was never any suggestion that the Hutchison operations at each end of the canal were anything but above board, or of preference for Chinese commercial interests.
Nonetheless, thanks to pressure including unfounded fears of Chinese control of a waterway through which 40 per cent of American container traffic passes, Hutchison has apparently felt compelled to dispose of legitimate businesses.
