Hong Kong Adds to China’s Growing Criticism of Panama Canal Deal
The pressure is increasing regarding a Hong Kong conglomerate’s plan to sell its Panama ports to BlackRock, the American investor, sparking concerns about the fate of the $19 billion deal.
John Lee, the leader of Hong Kong, joined China in expressing apprehensions about the transaction, stating that it warranted “serious attention.”
Initially seen as a resolution to a geopolitical issue stemming from President Trump’s claim that the ports’ Chinese ownership posed a national security threat, the deal between CK Hutchison and BlackRock is now facing scrutiny. Following Mr. Lee’s remarks, shares in CK Hutchison, controlled by Hong Kong billionaire Li Ka-shing, dropped nearly 3 percent.
China has criticized the proposed port deal, which would involve CK Hutchison selling most of its Hutchison Port Holdings, including the Panama ports and over 40 other global ports. Concerns have been raised about the potential political implications of the arrangement.
Mr. Lee emphasized the need for any transaction to comply with legal and regulatory requirements, hinting at possible obstacles for the deal. The warnings have sparked worries about the politicization of business in Hong Kong.
As tensions between the US and China escalate, deal-making involving Hong Kong companies has become increasingly politicized. The CK Hutchison-BlackRock deal is now viewed beyond its commercial aspect, with concerns about external influences.
Mr. Lee also criticized the US administration’s trade threats, advocating for fair competition in international economic relations. The situation reflects the broader global uncertainty surrounding trade policies.
