China has made its disapproval of CK Hutchison's planned sale of two ports on the Panama Canal to BlackRock, the American financial giant, abundantly clear. An op-ed published by the state-run newspaper Ta Kung Pao and later reposted by the Hong Kong and Macao Affairs Office of the State Council condemned the deal, which is said to be worth approximately $19 billion.
The agreement, which involves transferring control of significant shipping assets to U.S. investment firms, has been met with criticism amid growing tensions between Washington and Beijing. The deal garnered praise from U.S. President Donald Trump, who previously accused China of exerting too much influence over the Panama Canal.
Published on March 14, 2025, the op-ed warned CK Hutchison to “think twice” about its decision to sell the ports, insisting the move could allow the U.S. to leverage the ports for its political agendas. Commentators cited by the paper expressed outrage, some accusing the Hong Kong conglomerate of “spineless groveling” and “selling out all Chinese people.”
Following the publication of the op-ed, shares of CK Hutchison dropped nearly 7%, demonstrating the market's sensitivity to the geopolitical implications surrounding this sale. Analysts suggest this reflects the mounting pressures faced by multinationals operating at the crossroads of U.S. and Chinese interests, with many companies now worrying about becoming collateral damage amid trade tensions.
CK Hutchison Holdings, founded and led by Li Ka-shing, attempted to divest itself from the asset due to the growing scrutiny it faced. The company quickly moved to conclude the deal with BlackRock as the geopolitical climate—especially under Trump's administration—turned increasingly hostile. Experts note the sale might have been driven by concern over potential asset seizures by the Panamanian or U.S. governments.
Notably, the timing of the announcement coincided with the Chinese parliament's annual meeting, which raised eyebrows among analysts who initially thought the deal had at least tacit approval from Beijing. The op-ed's strong words suggest otherwise, positing this maneuver as more than just business—it touches upon national pride and interests.
“China's shipping and trade here will inevitably be subject to the U.S.,” the op-ed articulated, underscoring how the political situation could change under BlackRock's stewardship. Earlier this week, the Chinese Commerce Ministry directed criticism at Walmart for seeking local supplier discounts to mitigate the impacts of U.S. tariffs, highlighting the strained economic relations.
Lau Siu-kai, an academic with close ties to both the Hong Kong and Beijing governments, reflected on the notable dissatisfaction surrounding this deal. “Even if CK Hutchison Holdings is under pressure to sell the ports, why among all options will it decide to sell it to an American company?” he questioned, emphasizing the potential ramifications this could have on Hong Kong's position as intermediary between East and West.
The concerns raised not only extend to CK Hutchison's path but also hint at broader challenges facing Hong Kong. Since the imposition of the national security law by Beijing in 2020, many view the region's political standing as increasingly tenuous. Analysts fear this situation could shift the perception of Hong Kong among Western markets from being semi-autonomous to merely another Chinese territory.
According to various industry insiders, there is growing wariness about the attractiveness of Hong Kong as a business hub, especially as increased U.S. tariffs impact trade relations. Companies are forced to reconsider their strategies and potential impacts on their operations, underscoring the complicated relationship between business and politics.
The sale of the two Panama Canal ports marks yet another chapter in the saga of U.S.-China relations, with both countries vying for economic supremacy. For CK Hutchison, the repercussions of this deal may linger far beyond immediate financial gains, placing the company at the center of geopolitical debates and drawing attention to the delicate balance multinationals must maintain as they navigate between the two superpowers.
While CK Hutchison is currently facing the heat from both governments and the punishing visibility of its stock, it remains to be seen how this deal will affect not just the company but the broader economic relations between China and the United States.