China has sent its delegation to Panama after the Trump administration urged greater control of the canals and ports.
Chinese media criticized severely CK and Hutchison's $23 billion deal last week Two Panama ports and another 41 ports in 22 other countries were sold to US investment giant BlackRock.
Beijing hopes to “understand what's going on” and may reverse Panama's withdrawal from its highly discerning belt and road plans and retain control over Panama's ports. South China Morning on Monday.
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But, given President Trump's reportedly, this may be difficult Ask the U.S. military to consider all options Challenge CKH's control over the two ports by force or legal action, expelling China's foothold on important Central American waterways.
Meanwhile, there are reports that China is censoring port sales, and the Communist Party’s remarks have not stopped.
“Bullying” by foreign governments
When asked about CK Hutchison's port deal with Blackrock, Hong Kong leader John Lee expressed opposition to the opposition on Tuesday.
“The (Hong Kong) government urges foreign governments to provide a fair and just environment for businesses,” Lee told reporters at a weekly press conference.
“We oppose the abuse of coercive or bullying tactics in international economic and trade relations.”
The deal became highly politicized when Trump previously called for the withdrawal of the Panama Canal from what he called “China's control.”
Other U.S. politicians say CK Hutchison's port operations represent U.S. security risks to the U.S. because it relies on canals' dependence on commodity trade.
On Tuesday, another report said that Chinese authorities had begun researching port transactions, directing multiple agencies to review the agreement for potential security risks and antitrust violations.
CKH: Transaction is purely business
Hutchison did not immediately respond to a request for comment to the report. It had previously stated that the deal was “pure business in nature and had nothing to do with recent political news about the port of Panama.”
Given that CK Hutchison sells its business in China and Hong Kong, and the company itself is registered in the Cayman Islands, it is not clear that the leverage (if any) in China can block transactions.
Hong Kong leader Lee told reporters: “Any transaction must comply with legal and regulatory requirements”, adding that the city will handle it “under the law.”
Hutchison shares fell as much as 4.9% on Tuesday, the lowest since March 4.
CK Hutchison, a Hong Kong-founded and listed company owned by billionaire Li Ka-Shing, has an independent business in China.
A week after news about port transactions, China's Hong Kong and Macau Affairs Office reposted two re-reviews, criticizing CK Hutchison and saying the sale was a betrayal of China and neglecting national interests.
According to a statement, while CK and Hutchison agreed to exclusively negotiate with the BlackRock consortium, the deal has not yet been terminated.
Some executives and analysts say Hong Kong's advantages as an international financial center will further erode as geopolitical tensions squeeze.
As the controversy escalates, two sources told Reuters on Monday that CK and Hutchison will not hold earnings meetings after reporting the results on Thursday, a very unusual move for the conglomerate.
- Jim Pollard's Extra Input and Editing by Reuters
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