An investor group backed by BlackRock agreed to buy a majority stake in the Hong Kong subsidiary that runs ports along either side of the Panama Canal, giving a U.S. firm control of key docks amid pressure from the White House to take them from China.

The former British colony is caught in the eye of a storm between Beijing and Washington, underlined by the decision by conglomerate CK Hutchison, controlled by Hong Kong billionaire Li Ka-shing, to sell its ports network, including assets along the Panama Canal, to a U.S. consortium led by BlackRock.