Description: The $22.8 billion transaction between Hong – Kong based CK Hutchinson and Blackrock Inc. has been blocked by Chinese regulators citing violation of national interests. Blackrock was set to acquire ownership of a network of ports globally operated by CK Hutchinson, including key trade ports in the scrutinized Panama canal. Chinese regulators have opposed the transaction despite the fact that the ports in question allegedly weren’t crucial and didn’t subdue China’s trade influence in the canal. Panama and China have both come under scrutiny from US President Donald Trump who has repeatedly criticized the elaborate ploy by both countries to sabotage US economic and trade interests. The transaction’s block comes as Trump’s tariffs are set to be introduced on 02 Apr.
Impact: The US – China trade war has considerably intensified regarding the Panama canal as key global trade route. Trump’s hostile stance has prompted China to respond through its own corporate proxies as an obvious response to the mounting tariffs set to be imposed on China on 02 Apr. Blackrock and CK Hutchinson’s interest in the transaction only emphasize the intricate connection between the political and business community that exists in both China and the US. Relations between the US and China have gradually become more adversarial since Trump’s inauguration as both countries struggle to prevail geopolitically in several areas such as trade dominance, military and strategic influence in the Indo – Pacific and global economic supremacy. Tensions in every aspect of confrontation between the two countries would significantly rise in the upcoming period.