Vizhinjam and US-China row over Panama canal | Onmanorama Explains

This video offers the geopolitical background of the change in ownership of Adani Vizhinjam Ports Private Limited. In March 2024, the US president Donald Trump had vowed to rid Panama Canal of Chinese control. However, the buy out of C K Hutchison, the Hongkong-based operator of Balboa and Cristobal ports in Panama, by US asset major BlackRock was deliberately delayed by China citing violations of antitrust laws.

Finally, after Panama Supreme Court ruled Hutchison's operations unconstitutional, the Panama government picked two big companies to operate the ports from where Hutchison was expelled. One of these was MSC Shipping Company's Terminal Investment Limited (TiL), the very company that now plans to acquire 49% stake in Adani Ports. BlackRock has a controlling stake in TiL. The Adani-TiL deal happened just when China is mounting huge pressure on Panama to kick TiL out of Panama.