The Government of Nicaragua has cancelled plans from a Chinese businessman to construct a $50bn canal through the country after years of inactivity and protests against the project, which would ...

China’s ambitious plan to construct a massive canal through Nicaragua threatens to reshape global trade, challenging the dominance of the Panama Canal and raising geopolitical tensions.

Developed by Wang Jing, an enigmatic Chinese industrialist with ties to China’s ruling party, the Grand Nicaragua Canal will cost an estimated $40 billion and take five years to build.

President Manuel Ortega said on Saturday that the construction of a massive inter-oceanic canal in Nicaragua that could significantly alter global trade would start at the end of 2014.