PANAMA CITY – China is among the parties interested in bidding to build two new ports on the Panama Canal, according to the canal’s administrator. This comes amid US discussions about potentially retaking control of the strategic waterway.

Earlier in 2025, US President Donald Trump suggested that China controls the canal because Hong Kong-based CK Hutchison Holdings operates existing ports at both ends – Cristobal on the Atlantic and Balboa on the Pacific. In March, CK Hutchison agreed to transfer control of these ports to a conglomerate led by US-based BlackRock, but the deal has not yet been finalized.

Panama is aiming to attract $8.5 billion in investment over the next decade to expand port capacity, build a gas pipeline, and develop a new reservoir, among other projects. The canal administrator, Ricaurte Vasquez, said the country is seeking the broadest possible competition and that all interested parties would bid on equal footing. He declined to comment on whether awarding the projects to Chinese firms could increase tensions with the United States.

The Panama Canal Authority has begun meeting with potential bidders, and plans to award contracts for the two terminals in late 2026, with operations expected to start in 2029. Several international companies have expressed interest, including Hong Kong’s Cosco Shipping Ports and Orient Overseas Container Line, Singapore’s PSA International, Taiwan’s Evergreen, Germany’s Hapag Lloyd, Denmark’s Maersk, and France’s CMA Terminals. Panama’s five main ports, all located near the canal, are currently operated by concessionaires from the United States, Hong Kong, Taiwan, and Singapore.

The 80-kilometer canal, which carries around 5 percent of global maritime trade, is mainly used by the United States and China. The US managed the canal for a century before handing control over to Panama on December 31, 1999.