China threatens to squash Panama ports deal unless its shipping giant gets an equal stake: report
The deal, valued at around $20 billion, hands over more than 40 global ports owned by Hong Kong business magnate Li Ka-Shing to US asset manager BlackRock and Mediterranean Shipping Company.
China is demanding that Cosco, its largest shipping firm, be an equal partner to BlackRock and MSC in the deal, sources familiar with the matter told the Wall Street Journal.
A Cosco Shipping container freighter in the Port of Hamburg.
ZUMAPRESS.com
BlackRock, MSC and Li's firm, CK Hutchison, are all open to that idea, sources said.
MSC, Cosco and the Chinese Embassy did not immediately respond to The Post's requests for comment. BlackRock declined to comment.
The firms are currently staring down a July 27 deadline, when exclusive talks between the three partners will end and Cosco can be added to the deal.
But that change will likely anger President Trump, who has viewed the deal as a national security win as he argues that the US needs to 'take back' the waterway.
Chinese officials, meanwhile, have told Chinese state-owned companies to freeze any incoming deals with Hutchison or other businesses linked to Li, sources told the Journal.
The inclusion of Cosco emerged as a way to nudge the deal forward following intense US-China trade talks in Switzerland, Bloomberg reported last month.
A view of the Panama City skyline and Balboa port.
Nicola78/Wirestock Creators – stock.adobe.com
Chinese authorities have told BlackRock, MSC and Hutchison that without Cosco's inclusion in the deal, Beijing will take steps to block the sale, sources said.
And the firms involved in the deal can't afford to burn bridges with China.
BlackRock and Hutchison both have interests in the nation, and MSC is one of the largest shippers of Chinese exports in the world.
Italian billionaire Gianluigi Aponte's family-run business, MSC, has emerged as the lead investor in the deal, though BlackRock is notably expected to take over the two key Panama ports included in the sale.
The deal is expected to position MSC as the world's largest terminal operator.
It wouldn't be the first time China has squashed such a deal.
In 2014, it blocked a major shipping alliance between MSC, Denmark's AP Moeller-Maersk and France's CMA CGM.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 minutes ago
- Yahoo
What's Going On With Super Micro Stock On Monday?
Super Micro Computer (NASDAQ:SMCI) stock is trading upwards on Monday, akin to its semiconductor peers. This coincides with reports indicating the United States paused new restrictions on tech exports to China to avoid disrupting trade talks and support President Donald Trump's effort to meet with Chinese President Xi Jinping later this year. According to the report, which cited current and former U.S. officials, the Commerce Department's Bureau of Industry and Security received instructions in recent months to delay strict enforcement of export controls on policy shift comes as top U.S. and Chinese economic officials prepare to launch high-level trade discussions in Stockholm aimed at resolving long-standing disputes. The AI server specialist has seen a remarkable surge in its valuation this year, boasting a year-to-date gain exceeding 90%, with a notable 56% increase over the past three months. This robust performance is largely attributed to significant capital expenditure by leading technology companies on their artificial intelligence initiatives, fueling demand for Super Micro's specialized server solutions. In a related development, Super Micro partner Digi Power X (NASDAQ:DGXX) announced that its subsidiary, US Data Centers, filed a provisional utility patent for the ARMS 200 platform with the U.S. Patent Office. The ARMS 200 represents a Tier 3-certified modular data center, developed in collaboration with Super Micro, and engineered to support an impressive density of up to 256 Nvidia (NASDAQ:NVDA) B200/B300 GPUs per pod. Digi Power X intends to scale this platform to 40 MW at its Alabama facility, designed to power over 10,000 Nvidia GPUs for intensive AI workloads. The initial deployment of this advanced infrastructure is slated for the fourth quarter of 2025. It is worth noting that Digi Power X shares surged over 14% on July 17 following the announcement of a purchase order with Super Micro for Nvidia B200-powered systems, intended to underpin its Tier 3 AI infrastructure. Despite these positive developments, Super Micro has faced increased regulatory scrutiny concerning its internal financing controls. This heightened oversight followed the resignation of its independent auditor last October, an event that led to delays in the company's financial filings. Furthermore, persistent tariff uncertainties have compelled Super Micro to defer certain orders and revise its fiscal year revenue forecast downwards, narrowing the range to $21.8–$22.6 billion from the previously projected $23.5–$25 billion. Price Action: SMCI shares were trading higher by 8.23% to $58.97 at last check Monday. Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? SUPER MICRO COMPUTER (SMCI): Free Stock Analysis Report This article What's Going On With Super Micro Stock On Monday? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
5 minutes ago
- Yahoo
EU-US trade deal will come with economic consequences, German industries warn
While European Commission President Ursula von der Leyen praised a trade agreement signed between the EU and US on Sunday as a stabilising factor "in uncertain times," representatives of the German economy have expressed concern. Von der Leyen and US President Donald Trump struck a tentative trade deal to avert a potentially devastating tariff war between two of the world's largest economies on Sunday. The majority of EU exports bound for the US will be subject to a 15% tariff. According to a statement made by von der Leyen, this also includes billions of euros in EU investments in the US, as well as the purchase of defence equipment. Tariffs of 15% will now apply to car exports to the US, compared to the previously announced 25%. Import duties on steel are to remain unchanged at 50%. The German economy can breathe a sigh of relief for the time being, according to Managing Director of the German Chamber of Industry and Commerce Helena Melnikov. Melnikov said that worse has been prevented, however, "the deal has its price, and this price is also at the expense of the German and European economies." Wolfgang Niedermark from the Federation of German Industries was more critical. He stated that even a tariff rate of 15% would have an "immense negative impact" on Germany's export-oriented industry. The Federal Association of Wholesale, Foreign Trade and Service also spoke of a "painful compromise" and warned that supply chains would change and prices would rise, saying the deal will cost Germany growth, prosperity and jobs. Federal Chancellor Friedrich Merz, who was satisfied with Sunday's agreement, wrote on X that the deal showed it was possible to "avert a trade conflict". However, a review of Trump's actions to date raises doubts about the reliability of the agreement and the US president's words. In an interview with the Funke media group, Michael Hüther, director of the Institute for the German Economy, said that concerns remained as Trump had never completely taken tariff threats off the table. Sign in to access your portfolio
Yahoo
5 minutes ago
- Yahoo
Pony AI (PONY) Soars 16.3% on Robotaxi Roadtest Milestone
We recently published . Pony AI Inc. (NASDAQ:PONY) is one of the biggest performers recently. Pony AI soared by 16.29 percent week-on-week, to $15.13 from $13.01 on July 18, as investors cheered its achievement of a 2-million-kilometer road testing, which supported its firm position in the robotaxi industry, particularly in level 4 autonomous driving. The 2-million mark was a significant achievement for Pony AI Inc. (NASDAQ:PONY) as the company moves aggressively into preparations for more vehicle launches in line with its expansion plans. Following the road test milestone, Pony AI Inc. (NASDAQ:PONY) announced on Saturday, July 26, that it officially received a permit to operate fully driverless robotaxi services at the Pudong New Area in Shanghai. Photo by Samuele Errico Piccarini on Unsplash According to the company, its approval made it the only company with a fully driverless commercial Robotaxi service permits in all four of China's tier-one cities—Beijing, Shanghai, Guangzhou, and Shenzhen. It said expansion plans will follow in the core business districts of Jinqiao and Huamu. While we acknowledge the potential of PONY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
