Significant criticism from both Beijing and Hong Kong

In March 2025, CK Hutchison Holdings, a conglomerate controlled by Hong Kong tycoon Li Ka-shing, announced the sale of its port assets near the Panama Canal to a U.S.-led consortium, including BlackRock, for approximately $23 billion. This decision has sparked significant criticism from both Beijing and Hong Kong authorities, highlighting geopolitical sensitivities surrounding strategic infrastructure.

Beijing’s Reaction

Chinese authorities have expressed strong disapproval of the sale, viewing it as a loss of strategic assets amid ongoing U.S.-China tensions. State-backed media outlets have labeled the transaction a “strategic betrayal,” suggesting it undermines China’s interests and benefits the United States. The timing of the sale, coinciding with U.S. President Trump’s assertions about reclaiming the Panama Canal, has further aggravated Beijing’s concerns.

Hong Kong’s Position

Hong Kong officials have echoed Beijing’s sentiments. Chief Executive John Lee emphasized that the criticisms warrant “serious attention,” reflecting the gravity with which the matter is viewed locally. The Hong Kong and Macau Affairs Office amplified critiques by reposting commentaries condemning the deal, signaling alignment with Beijing’s stance. ​

Implications for CK Hutchison

The backlash places CK Hutchison in a challenging position, caught between geopolitical pressures from both China and the United States. While the company aims to mitigate trade risks and reduce exposure, the sale has led to a sharp decline in its stock value, reflecting investor concerns over potential repercussions from Beijing.

Conclusion

The controversy surrounding CK Hutchison’s sale of its Panama Canal port assets underscores the intricate balance Hong Kong businesses must maintain amid escalating U.S.-China tensions. The strong reactions from both Beijing and Hong Kong authorities highlight the geopolitical significance attributed to strategic infrastructure and the complexities faced by conglomerates operating in this environment