A Hong Kong company’s decision to sell its global port stakes highlights the dilemma countries and firms will face in pursuit of Chinese and US investment, according to analysts.
Advertisement
They added that as the United States under President Donald Trump sought to exclude China from agreements around the world, Beijing’s global ambitions, particularly its Belt and Road Initiative, were expected to confront resistance and even a rollback.
CK Hutchison Holdings announced on Tuesday that it had agreed to sell control of a unit operating ports near the Panama Canal after US President Donald Trump said he wanted the US to regain control of the critical trade route.
A consortium including BlackRock, Global Infrastructure Partners and Terminal Investment Ltd reached a preliminary deal to acquire units that hold 80 per cent of the Hutchison Ports group, worth US$23 billion (HK$179 billion), CK Hutchison said in a joint announcement with the consortium.
The consortium will also acquire 90 per cent of Panama Ports, which operates the two ports in Balboa and Cristobal, along with CK Hutchison’s controlling interest in 43 other ports in 23 countries.
Advertisement
Trump sparked a furore over the canal when he claimed during his inauguration speech in January that China controlled the waterway, a claim that Panama’s president and officials in Beijing have called “lies”.