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BlackRock CEO Larry Fink has his sights set on a strategic acquisition that could reshape global trade dynamics, as he pursues a $23 billion deal to acquire 43 ports from Hong Kong-based CK Hutchison, including crucial terminals on both sides of the Panama Canal.

CK Hutchison, led by 96-year-old Hong Kong billionaire Li Ka-shing, caught widespread attention after former President Trump highlighted the Panama Canal’s strategic significance. The canal, a vital 51-mile waterway connecting the Atlantic and Pacific oceans, has become a focal point of international interest, with Hutchison holding valuable long-term leases there and at other key locations like the Suez Canal.

BlackRock identified an opportunity when Trump began emphasizing the need for American presence at the Panama Canal, which the US constructed and managed until the 1970s. The investment firm saw potential for both financial gains and political favor.

However, the Chinese Communist Party has emerged as a significant obstacle, launching investigations into the deal and threatening to block the entire transaction. Despite these challenges, BlackRock maintains a confident stance privately.

“We are proceeding as if this deal will happen,” a BlackRock executive told On The Money as this column went to press.

The company dismisses concerns about missing a reported Wednesday signing deadline, emphasizing instead the importance of the 145-day due diligence period that commenced on March 4. This timeframe was deliberately structured to address complex regulatory requirements across multiple jurisdictions and secure approval from Chinese President Xi Jinping.

The deal’s fate may become intertwined with broader US-China relations, including ongoing negotiations regarding TikTok’s future in America. Trump, who highlighted the BlackRock deal in his State of the Union address, maintains a complex relationship with Xi Jinping, combining mutual respect with strategic wariness, particularly following the COVID-19 pandemic’s impact on his 2020 reelection bid.

The White House is currently working to finalize a plan for TikTok that would satisfy US security concerns while preserving Chinese interests. The proposed solution involves Oracle’s oversight of TikTok’s algorithm through cloud services, allowing Chinese stakeholders to maintain partial ownership while addressing American security requirements.

BlackRock’s position as the first US asset manager to establish operations in mainland China gives Fink unique insight into Chinese political dynamics. However, the deal’s success remains uncertain, as Chinese authorities may ultimately reject it due to concerns about growing American influence in strategic locations.

A BlackRock rep had no comment.