Beijing has Punished Li Ka-shing for Sale of Panama Canal Ports to US – The Sale has been Halted
China has punished Hong Kong billionaire Li Ka-shing after his company sold two ports in the Panama Canal to a US investment giant following pressure from Donald Trump. Officials in Beijing have told Chinese state-owned businesses to stop doing deals with Mr. Li’s CK Hutchison conglomerate, which part-owns the Vodafone and Three network in the UK, amid growing anger over the ports sale to US investment giant BlackRock. Mr. Li’s group struck a $22.8bn deal to offload the terminals shortly after Mr. Trump, the American president, said the US should “take back” the ports because of growing Chinese influence. In retaliation, Chinese authorities have effectively blacklisted CK Hutchison and the business interests of the Li family by telling Chinese state-backed firms they will struggle to get regulatory approval for any work involving the group.
China’s order could place mounting pressure on CK Hutchison to overturn the BlackRock deal, which will involve offloading 43 other ports in 23 countries across the globe, including Britain’s largest seaport, in Felixstowe, Suffolk. The sale of the ports to the Americans has put Mr. Li, 96, in Beijing’s firing line. He is Hong Kong’s richest man and key business figure in the region. CK Hutchison is also one of Britain’s largest foreign investors, holding stakes in Northumbria Water and the Greene King chain of pubs. It has also been linked to an investment in embattled Thames Water.
BlackRock’s takeover of the Panama Canal ports came shortly after Mr. Trump claimed that American ships were being charged excessive fees, saying they were “not treated fairly in any way, shape or form”. Although CK Hutchison denied the Panama sale was politically motivated, it sparked a furious reaction from the Chinese Communist Party, which sent a senior level delegation to Panama and railed against the move in state-controlled media. Hong Kong newspaper Ta Kung Pao slammed CK Hutchison’s sale as “a spineless kneeling, profit-seeking and unrighteous act, ignoring national interests and national justice, and betraying and selling out all Chinese people”. The op-ed suggested that BlackRock may charge “special docking fees” to Chinese ships as it accused the Trump administration of seeking to “suppress China’s development”.
The Latest News Report from Beijing States that the Hong Kong Company has Stopped the Sale of its Port Operations in the Panama Canal
The Hong Kong company has stopped the sale of its port operations in the Panama Canal, valued at $23 billion, following criticism from Beijing and growing geopolitical tensions. More information is expected in the coming days on the future of these strategic assets. The sale of CK Hutchison Holdings port operations in the Panama Canal has been suspended, according to the South China Morning Post. The decision to suspend the sale comes amid rising geopolitical and critical tensions by Chinese authorities. According to the Hong Kong Free Press, Beijing has resumed its criticism of CK Hutchison for the sale of its port assets in the Panama Canal.
Also, the Straits Times reports that China has instructed its state-owned companies to pause new collaborations with businesses linked to the family of Li Ka-shing, founder of CK Hutchison Holdings. Experts suggest selling these assets to US companies, such as BlackRock, could have intensified Beijing’s concerns over foreign influence in strategic infrastructure. The Atlantic Council notes that the decision to sell these ports to an American firm surprised officials in both Hong Kong and Beijing, creating a dilemma on how to respond without affecting Hong Kong’s perception as a global financial hub.
The South China Morning Post https://www.scmp.com/ had this online this morning:
Beijing to launch antitrust probe into deal by Li Ka-shing’s conglomerate. Hong Kong group ‘will not sign Panama deal next week’.
