Hong Kong’s leader discussed CK Hutchison Holdings’ sale of Panama Canal port assets amid rising tensions between Beijing and Washington. He urged fair treatment for businesses and noted domestic concerns without directly criticizing the company or its owner. This controversial $23 billion deal has attracted significant attention, particularly from Chinese authorities, while Panama maintains its control over the canal.
Hong Kong Chief Executive John Lee has addressed the contentious sale of CK Hutchison Holdings’ Panama Canal port assets to a consortium led by American investment bank BlackRock. This deal has provoked strong reactions, particularly from Beijing, who see it as potentially undermining national interests. Lee emphasized that the concerns surrounding the deal warrant serious consideration, although he did not clarify specific issues or criticize either CK Hutchison or its owner, tycoon Li Ka-shing.
During a weekly press briefing, Lee stated, “(The) government urges foreign governments to provide a fair and just environment for enterprises,” while opposing coercion in international trade. His remarks were perceived as a subtle response to Beijing’s dissatisfaction with the transaction. Chinese newspapers associated with the state have criticized the agreement, framing it as a betrayal that disregards national interests and labeling businesspeople who collaborate with American politicians as unpatriotic.
Beijing’s reaction reflects its growing discontent with the deal, although the full implications remain uncertain. CK Hutchison’s decision to sell its interests while simultaneously reporting on its 2024 financial outcomes has drawn scrutiny. The company characterized the sale as a purely commercial venture, distinct from any political ramifications.
The BlackRock-led consortium, if the deal is approved, would gain control over multiple ports, including those at the strategic ends of the Panama Canal. Panama has asserted its sovereignty over the canal, clarifying that the sale does not equate to a return of U.S. control. Notably, 70% of the canal’s sea traffic is linked to U.S. ports, which underscores its importance in international trade.
In summary, Hong Kong’s Chief Executive John Lee has brought attention to the potential ramifications of CK Hutchison’s sale of Panama Canal assets to BlackRock. His statements, while cautious in avoiding direct criticism, reflect the complex interplay between business interests and political pressures amidst rising tensions between the U.S. and China. The outcome of this transaction, pending government approval in Panama, remains pivotal to both local and international stakeholders.
Original Source: apnews.com
