Negotiations for the sale of Panama Canal port facilities and operations at 40 other ports hit a dead end after China demanded a controlling interest as a condition of the deal. Beijing is demanding that state-owned shipping line Cosco get a controlling stake in the $22.8 billion sale of CK Hutchison Holdings (0000.HK), the Hong Kong conglomerate owned by billionaire Li Ka-shing.

The Panama ports are at the center of a geopolitical tug of war after President Donald Trump threatened to take back control of the Panama Canal, which he claimed was under China’s control. Cosco has also been a target of the administration, after a U.S. probe found Beijing leveraged anti-competitive measures to build a dominant position in shipping and shipbuilding.

https://www.freightwaves.com/news/report-china-demands-control-of-panama-ports-operator