China has voiced disapproval over a Hong Kong company's decision to sell its controlling interest in Panama's ports to American investors. The Chinese government has urged CK Hutchison to reconsider the $22.8 billion transaction, labeling it as "power politics" that undermines national interests.
Following a critical piece in the Beijing-supported Ta Kung Pao newspaper, shares of CK Hutchison dropped over 6% on Friday. The company recently agreed to sell a majority stake in Panama Ports Company, which manages the Balboa and Cristóbal ports until 2047, to a consortium led by the U.S. financial firm BlackRock. This decision comes amid pressure from Donald Trump to reduce China's influence over the Panama Canal's strategic trade route.
China condemned the U.S. for allegedly coercing the deal through "despicable means," with the commentary accusing CK Hutchison of compromising integrity for profit and neglecting national interests. The piece argued that the sale would allow the U.S. to restrict China's shipping and trade, urging CK Hutchison to reconsider its stance.
The Hong Kong and Macau Affairs Office, which oversees the region, reposted the article, raising concerns among investors about the deal's completion without Beijing's approval. BlackRock's acquisition is part of a broader strategy to gain control over 43 ports across 23 countries.
The commentary criticized the U.S. for using state power to infringe on other nations' rights through coercion and pressure, describing the deal as an act of hegemony. U.S. Secretary of State Marco Rubio visited Panama in February, expressing that Chinese control over the canal was unacceptable and pledging to protect American interests.
CK Hutchison has maintained that the transaction is purely commercial and not influenced by political developments. Co-managing director Frank Sixt emphasized that the sale resulted from a competitive process with multiple bids.
While CK Hutchison is in exclusive talks with BlackRock for 145 days, the deal remains pending. Meanwhile, the Trump administration has reportedly asked the Pentagon to explore military options to ensure U.S. access to the canal and proposed tariffs on Chinese-made ships to boost domestic shipbuilding.
In 2023, CK Hutchison's revenue from Mainland China and Hong Kong was nearly 14%, with about half coming from the UK and Europe. The company, led by billionaire Li Ka-shing, asserts its independence from China, which assumed control of Hong Kong in 1997. In the UK, CK Hutchison is merging its mobile business with Vodafone.