Panama ports deal of strategic importance, say Hong Kong political heavyweights

Hong Kong political heavyweights have raised concerns over Li Ka-shing’s CK Hutchison Holdings’ plan to sell its Panama Canal ports, warning the sale should not be viewed purely through a commercial lens as it is of strategic importance to the nation’s development and security.

The warnings added a fresh layer of pressure on tycoon Li’s flagship company after two Beijing offices overseeing Hong Kong’s affairs posted scathing commentaries on their websites twice criticising the deal.

The moves are seen as an indirect attempt by Beijing to press the company to reconsider the mega deal.

The company has remained silent since revealing on March 4 the surprise deal to sell its overseas assets including two ports at the Panama Canal to a consortium led by US investment firm BlackRock for US$23 billion. The deal will generate US$19 billion in cash for CK Hutchison.

US President Donald Trump hailed BlackRock’s deal, saying Washington would be “reclaiming” the canal from Chinese control. CK Hutchison had come under pressure for months after Trump won re-election to the White House.

The company said at that time the deal was “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama ports.”