By AFP
March 18, 2025
The business empire of Hong Kong's richest man, Li Ka-shing, sold its Panama Canal port operations to a US-led consortium following pressure from US President Donald Trump - Copyright AFP/File MARTIN BERNETTI
Hong Kong leader John Lee on Tuesday said criticism of city conglomerate CK Hutchison’s sale of its Panama Canal ports deserved “serious attention”, after Beijing authorities repeatedly slammed the deal.
The business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its port operations — including those in the canal — to a US-led consortium this month following pressure from US President Donald Trump.
But Beijing has upped pressure on the firm since, with two Chinese government offices managing Hong Kong affairs republishing newspaper articles last week blasting the transaction and questioning whether CK Hutchison sided with the United States over China.
“There have been extensive discussions in society about the issue and this reflects society’s concern over the matter,” Lee, the chief executive of the largely autonomous Chinese city, told reporters.
“These concerns deserve serious attention.”
Bloomberg News reported on Tuesday, citing unnamed sources, that senior Chinese leaders have ordered several government agencies — including the State Administration for Market Regulation — to scrutinise the deal.
This examination by Beijing does not necessarily result in follow-up action, the sources told Bloomberg, asking not to be identified to discuss private deliberations.
Shares of CK Hutchison in Hong Kong fell nearly four percent on Tuesday morning.
For months, Trump has complained that China controls shipping in the Panama Canal, which was built by the United States more than a century ago to link the Pacific and Atlantic oceans.
The US president repeatedly threatened to “take back” the canal, which was handed over to Panama in 1999.
– ‘Bullying tactics’ –
Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one on the Cristobal, Atlantic, side and the other on the Balboa, Pacific, side — via a government concession since 1997.
CK Hutchison, one of Hong Kong’s largest conglomerates, said the deal was unrelated to recent political news.
Lee on Tuesday urged foreign governments to “provide a fair and just environment” for Hong Kong enterprises, without calling out the United States by name.
“We oppose the abusive use of coercion, of bullying tactics in international economic and trade relations,” he said.
Lee said any transaction must comply with legal and regulatory requirements, adding that Hong Kong would “handle it in accordance with the law and regulations”.
The Hong Kong and Macao Work Office — an office in Beijing overseeing Hong Kong affairs — republished a newspaper article last Thursday asking CK Hutchison “which side it stands on”.
Two days later, it ran another piece critical of the deal, which was later republished by the Liaison Office, the top Beijing authority based in Hong Kong.
AFP has contacted the conglomerate for comment.
Outspoken Hong Kong ex-leader CY Leung added to the chorus of criticism, saying “some Hong Kong businesspeople mistakenly believe that ‘businesspeople have no homeland'”.
“American businesspeople can and will do only things aligned with US interests… the same applies to China,” Leung wrote on Facebook on Monday.
Hong Kong’s Hutchison under fire again for Panama ports deal
By AFP
March 15, 2025
View of the Port of Balboa, which was managed by CK Hutchison Holdings - Copyright PERUVIAN NAVY/AFP Handout
Hong Kong conglomerate CK Hutchison is under renewed pressure from Beijing after selling its Panama Canal ports, with Chinese authorities publishing newspaper criticism of the deal for the second time in three days.
Last week the business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its ports operations — including those in the canal — to a US-led consortium following pressure from US President Donald Trump.
In a statement, CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company and sell a slew of other non-Chinese ports to a group led by giant asset manager BlackRock for $19 billion in cash.
On Saturday, the Hong Kong and Macao Work Office — the Beijing-based authority in charge of Hong Kong affairs — reposted a newspaper editorial titled “Great entrepreneurs have always been outstanding patriots”.
The article, originally published by the Beijing-backed newspaper Ta Kung Pao in Hong Kong, said many Chinese people have questioned “how so many important ports can be so easily handed over to ill-meaning American forces”.
“If (entrepreneurs) fail to see the true nature of American politicians… and choose to dance with them, perhaps they can do a mega-deal and get rich for a while, but in the end they have no future and will be scorned by history,” the piece read.
The same article was also republished in full on Saturday by the Liaison Office, the top Beijing authority based in Hong Kong.
– ‘Choose a side’ –
CK Hutchison stocks in Hong Kong plunged more than six percent on Friday after Chinese authorities republished an op-ed telling the company to choose “which side it stands on”.
That older article appeared in the commentary section of Thursday’s Ta Kung Pao, which is owned by a subsidiary of the Liaison Office.
In contrast, Saturday’s editorial was excerpted on the front page and its full text ran on page three.
The paper’s website published three more opinion pieces by outside contributors on Sunday morning, all critical of the deal.
CK Hutchison has not responded to AFP’s request for comment.
For months, Trump has complained that China controls the Panama Canal and that American vessels were overcharged for using it, even refusing to rule out a military invasion of Panama to “take back” the vital waterway.
Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one at Cristobal and the other at Balboa — via a government concession since 1997.
The ports transaction was “purely commercial… and wholly unrelated to recent political news”, co-managing director Frank Sixt said when the deal was announced.
China’s foreign ministry spokesperson Lin Jian declined to comment on the deal earlier this month.
The Hong Kong government has said it “never interfered in the commercial operation of Hong Kong companies”.
CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.
By AFP
March 15, 2025
View of the Port of Balboa, which was managed by CK Hutchison Holdings - Copyright PERUVIAN NAVY/AFP Handout
Hong Kong conglomerate CK Hutchison is under renewed pressure from Beijing after selling its Panama Canal ports, with Chinese authorities publishing newspaper criticism of the deal for the second time in three days.
Last week the business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its ports operations — including those in the canal — to a US-led consortium following pressure from US President Donald Trump.
In a statement, CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company and sell a slew of other non-Chinese ports to a group led by giant asset manager BlackRock for $19 billion in cash.
On Saturday, the Hong Kong and Macao Work Office — the Beijing-based authority in charge of Hong Kong affairs — reposted a newspaper editorial titled “Great entrepreneurs have always been outstanding patriots”.
The article, originally published by the Beijing-backed newspaper Ta Kung Pao in Hong Kong, said many Chinese people have questioned “how so many important ports can be so easily handed over to ill-meaning American forces”.
“If (entrepreneurs) fail to see the true nature of American politicians… and choose to dance with them, perhaps they can do a mega-deal and get rich for a while, but in the end they have no future and will be scorned by history,” the piece read.
The same article was also republished in full on Saturday by the Liaison Office, the top Beijing authority based in Hong Kong.
– ‘Choose a side’ –
CK Hutchison stocks in Hong Kong plunged more than six percent on Friday after Chinese authorities republished an op-ed telling the company to choose “which side it stands on”.
That older article appeared in the commentary section of Thursday’s Ta Kung Pao, which is owned by a subsidiary of the Liaison Office.
In contrast, Saturday’s editorial was excerpted on the front page and its full text ran on page three.
The paper’s website published three more opinion pieces by outside contributors on Sunday morning, all critical of the deal.
CK Hutchison has not responded to AFP’s request for comment.
For months, Trump has complained that China controls the Panama Canal and that American vessels were overcharged for using it, even refusing to rule out a military invasion of Panama to “take back” the vital waterway.
Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one at Cristobal and the other at Balboa — via a government concession since 1997.
The ports transaction was “purely commercial… and wholly unrelated to recent political news”, co-managing director Frank Sixt said when the deal was announced.
China’s foreign ministry spokesperson Lin Jian declined to comment on the deal earlier this month.
The Hong Kong government has said it “never interfered in the commercial operation of Hong Kong companies”.
CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.
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