(ZeroHedge)—A new report from the Wall Street Journal suggests that President Trump may be growing concerned—or is already alarmed—by this new development: Beijing is now demanding that China’s largest shipping company, Cosco, be included in the Western-investor deal to purchase ports from Hong Kong–based CK Hutchison.

The future of CK Hutchison’s deal to sell two Panama ports—the Balboa and Cristóbal terminals (40 other ports worldwide)—to a BlackRock-led consortium is becoming increasingly complex with Beijing pushing for Cosco to join the group of investors…

Here’s more from the report:

China is pushing for state-owned Cosco to be an equal partner and shareholder of the ports with BlackRock and Mediterranean Shipping Co., a containership operator, according to people familiar with the deal talks. BlackRock and MSC in March reached a preliminary agreement to buy the ports in a deal valued at nearly $23 billion.

Now, BlackRock, MSC and Hutchison all are open to Cosco’s taking a stake, the people familiar with the talks said.

The parties aren’t likely to reach a deal before a previously agreed upon July 27 end date for exclusive talks between BlackRock, MSC and Hutchison, the people familiar with the talks said. The parties can’t strike a deal that includes Cosco until the exclusivity period ends.

China has already directed state firms to freeze dealings with Hutchison over the sale of the ports to Western investors.

WSJ’s report is unlikely to sit well with the President, his advisors, or military planners, especially as the Pentagon’s strategic pivot has focused on bolstering hemispheric defense—part of a broader effort to reclaim control of the Panama Canal from Chinese influence. After all, the last thing the U.S. needs is China meddling in the Gulf of America.

And by the way…

As for the Panama ports and the race for Western control—well, that appears to be at a deadlock. We suspect the port deal will be folded into trade negotiations between the U.S. and China.