Two ports at each end of the Panama Canal owned by a Hong Kong-based conglomerate are set to be sold to American asset management firm BlackRock, Inc. in response to President Trump's threats to retake the American-built canal. Trump and his supporters are concerned that continued Chinese operation of the ports posts acute risks for U.S. national security.
Bob Maginnis is a retired army officer and a national defense strategist. He has serious reservations about BlackRock.
"… BlackRock is in bed with the Communist Chinese in a big way. So, I'm not incredibly enthusiastic about it. They cater to them, they seek their business, they do whatever Beijing tells them to do," he tells AFN.
"So yes, they [BlackRock] are ostensibly American, but they're an international organization with multiple clients. But the Trump administration thinks that … getting [control of the Canal] out of direct Chinese hands and putting it into BlackRock's hands certainly is better having the headquarters in New York than having it in Hong Kong for those that run both ends of the Panama Canal."
Still, Maginnis contends other options exist that don't have ties to the Chinese.
"The litmus test for me would have been U.S.-headquartered and U.S.-run port capabilities – and then those firms are hired by an American conglomerate, like BlackRock, to run the ports," he describes. "Just because they're – quote – 'owned by BlackRock' that has a big building in New York doesn't necessarily mean that they aren't sympathetic to Chinese interests. I think that that has to be the litmus."
According to The Associated Press, the $23 billion deal will give the BlackRock consortium control over 43 ports in 23 countries. The transaction must be approved by Panama's government.
A March 10 report by a business news outlet says the BlackRock consortium behind the sale includes its subsidiary Global Infrastructure Partners (GIP), which is owned by Nigerian billionaire Adebayo Ogunlesi. BlackRock purchased GIP from Ogunlesi in January for $12 billion, making him among the world's wealthiest persons. At the time of the purchase, Ogunlesi was chair of President Joe Biden's National Infrastructure Advisory Council.
Editor's note: Bob Maginnis is author of several books, including his latest: "Preparing for World War III."
