Beijing’s Discontent Grows Over CK Hutchison’s Panama Ports Sale

Arabian Post Staff -Dubai

Chinese authorities have initiated a review of CK Hutchison Holdings Ltd.’s agreement to divest its port assets near the Panama Canal to a consortium led by BlackRock Inc., expressing dissatisfaction with the Hong Kong-based conglomerate’s decision.

The deal, valued at approximately $22.8 billion, encompasses the sale of 43 ports across 23 countries, notably including the Balboa and Cristobal terminals situated at either end of the Panama Canal. CK Hutchison asserts that the transaction is purely commercial and does not involve its port operations in Hong Kong or mainland China.

Beijing’s reaction has been notably severe. The Hong Kong and Macau Affairs Office, representing China’s central government, has publicly criticized the sale, describing it as a “betrayal of all Chinese people.” State-affiliated media have echoed this sentiment, labeling the move as “spineless” and accusing CK Hutchison of yielding to foreign pressure.

This development occurs amid heightened geopolitical tensions between China and the United States. U.S. President Donald Trump has lauded the acquisition, interpreting it as a strategic move to reclaim American influence over the Panama Canal, a vital maritime passage constructed by the U.S. in the early 20th century and transferred to Panamanian control in 1999.

In response to the sale, Chinese officials are contemplating the application of anti-monopoly laws to scrutinize the transaction further. Legal experts suggest that while Beijing’s jurisdiction over CK Hutchison’s overseas operations is limited, potential leverage could be exerted through the conglomerate’s substantial investments within China.

Hong Kong’s Chief Executive, John Lee, has also weighed in, denouncing coercive tactics by foreign governments without directly naming the United States or addressing the specifics of the port deal. He emphasized the importance of fair international trade practices and the need to resist external pressures.