Nicaragua’s parliament has revoked the permit it granted to a Chinese investor to dig a canal through the country between the Atlantic and Pacific oceans. Wang Jing received permission to build a replacement canal for the Panama Canal in 2012, but little work has been done since then.

A new connection would be worth a $50 billion investment because the 110-year-old Panama Canal is too shallow and narrow for modern ships. In recent months, shipping traffic has had to be restricted because drought has made the 81-kilometre-long waterway less navigable.

The new project is 287 kilometers long, and according to the Ortega government, it will give Nicaragua an economic boost. Wang’s investment company will be allowed to operate the canal for 100 years.

Opponents strongly protested these plans. They feared environmental damage and advocated for residents forced to move downstream of the canal. In 2019, three protest leaders were sentenced to more than 200 years in prison for planning a coup.

In the end, little work was done. The project was officially launched with a ceremony in 2014, but no digging in the canal has ever been done. Only the access road has been created.

In the intervening years, Wang faced financial difficulties. The decline in the Chinese stock market caused his wealth to decline from about $7 billion in 2015 to less than $1 billion in 2019.

Overall, it was now enough for Nicaragua to stop the project. By the way, only Wang’s statement was revoked; The law that gave it permission still applies, should a new lender emerge.