Sen. Eric Schmitt: Panama Should Expel CK Hutchison

Missouri Republican Sen. Eric Schmitt called on Panama to expel a Chinese corporation that said it will not surrender key ports near the Panama Canal.

Hong Kong tycoon Li Ka-shing's CK Hutchison will not sign a deal next week to sell its two Panama Canal port operations to a BlackRock-led group amid growing pressure from Beijing, the South China Morning Post reported Friday.

Chinese authorities have reacted negatively to plans by the conglomerate while the deal was hailed by President Donald Trump, who wants to retake control of the strategic waterway.

Schmitt, who has raised the issue of Chinese Communist Party influence over seaports, issued a comment regarding Hutchison’s decision.

"America did not sacrifice so much to build the Panama Canal only to have it controlled by our greatest adversary, China," Schmitt said in a statement emailed to Newsmax. "This is a major national security issue. The treaty that the United States signed is contingent on the canal remaining neutral – with Chinese companies controlling key ports on the canal, it is anything but neutral.

"President Trump was clear: the Panama Canal cannot be controlled by our greatest foreign adversary. If the company will not do the right thing on their own, then Panama must expel CK Hutchinson without delay."

Senator Schmitt filed a resolution in January that calls on Panama to expel all Chinese influence from the canal.

CK Hutchison had been expected to sign the deal with a BlackRock-led group on April 2, according to the sale announcement made on March 4.

It is understood the situation does not mean the deal has been called off, the South China Morning Post added, citing its source.

A CK Hutchison unit operates two of the five ports adjacent to the Panama Canal, which manages about 3% of the global sea-borne trade. Panama first awarded the concession to the company in 1998 to run the ports and extended it for another 25 years in 2021.

Reuters contributed to this story.