Panama Audits Hutchison PPC After Trump's Complaints of Chinese Influence

 

After criticism from President Donald Trump about the Panama Canal's operations, the Panamanian government has announced an audit of the local unit of Hutchison Port Holdings, the Hong Kong-based giant that manages container terminals near each end of the waterway. Hutchison is a Chinese firm, and Trump has accused Panama of allowing China to "operate" the Canal, which was held by the U.S. up until 1999. The president has pledged to "take back" the Canal Zone, declaring his ambitions to "expand our territory."

Ahead of Trump's inauguration, Panamanian Comptroller General Anel Bolo Flores promised to conduct a probe to ensure that Hutchison is in compliance with its 25-year concession for the Balboa and Cristobal container terminals. The Panama Maritime Authority renewed the concession for Hutchison's Panama Ports Company in 2021, under a previous administration, and Flores said that the local branch of Hutchison would be subjected to a "severe and strong" financial audit. He did not specify whether the sudden audit was related to Trump's statements. 

Hutchison is the world's largest commercial container terminal operator, with 53 locations around the globe. While it is not necessary to transact with Hutchison to pass through the Panama Canal, many container ships do stop to drop off and pick up cargo at Hutchison's Balboa facility, the busiest transshipment terminal in Latin America.

Hutchison's largest known shareholders include the Li Ka-shing family of Hong Kong (30 percent) and the American private equity fund BlackRock (two percent).

Top image: Hutchison PPC's Balboa container terminal (file image courtesy Gualberto107 / CC BY SA 3.0)