Hutchison Faces Heat Over Controversial Panama Ports Deal
CK Hutchison, a Hong Kong-based holding company, is facing increased scrutiny from Beijing following the sale of its Panama Canal port operations. This has led to Chinese authorities criticizing the transaction for the second time within three days through newspaper publications.
The previous week, the vast business conglomerate owned by Hong Kong’s wealthiest individual, Li Ka-shing, divested a significant portion of its port operations – encompassing locations within the canal – to an American-led group, prompted by pressures exerted by U.S. President Donald Trump.
CK Hutchison Holdings announced in a statement that they will divest a 90% interest in the Panama Ports Company along with several other international port assets to a consortium headed by leading investment firm BlackRock for $19 billion in cash.
On Saturday, the Hong Kong and Macau Affairs Office, based in Beijing and overseeing matters related to Hong Kong, shared an op-ed entitled "Outstanding Patriots Have Always Been Great Entrepreneurs."
The article, initially featured in the Beijing-supported Hong Kong-based newspaper Ta Kung Pao, stated that numerous Chinese citizens have raised doubts about how “so many crucial ports could be readily surrendered to malevolent American troops.”
The article stated, 'If entrepreneurs overlook the genuine character of American politicians... and decide to partner with them, they might secure a massive deal and become wealthy temporarily, yet ultimately, they face bleak prospects and will be dismissed by history.'
The entire article was likewise republished on Saturday by the LiaISON OFFICE, which serves as the primary Beijing authority stationed in Hong Kong.
'Choose a side'
Shares of CK Hutchison in Hong Kong dropped over six percent on Friday following the reposting of an editorial by Chinese regulators urging the firm to clarify which side it supports.
The aforementioned older article was published in the commentary section of Thursday's Ta Kung Pao, a newspaper under a subsidiary of the Liaison Office.
On the contrary, parts of Saturday's editorial were featured on the front page, with the complete text published on page three.
On Sunday morning, the newspaper’s website posted an additional three opinion articles from external writers, each one being critical of the agreement.
CK Hutchison has not replied to AFP's request for commentary.
For months, Trump has been complaining that China dominates the Panama Canal and claims American ships have faced excessive charges when utilizing it. He hasn’t ruled out the possibility of launching a military assault on Panama with the aim of “reclaiming” this crucial passage.
Prior to the sale, CK Hutchison's Panamanian affiliate was responsible for managing two out of the five ports along the canal under a government concession; these were located at Cristobal and Balboa, having been operational since 1997.
The port transaction was described as "strictly commercial... with no connection to recent political developments" by co-managing director Frank Sixt at the time of the announcement.
Earlier this month, China's foreign ministry spokesperson Lin Jian chose not to comment on the agreement.
The Hong Kong government has stated that it "has never interfered with the commercial operations of companies based in Hong Kong."
One of Hong Kong's biggest corporate groups, CK Hutchison Holdings operates across various sectors including finance, retail, infrastructure, telecommunications, and logistics.
