Pro-Beijing paper urges Li Kaing to reach out to the Panama port for sale

(Bloomberg) – A pro-Beijing newspaper called on CK Hutchison Holdings Ltd. to withdraw from the deal to sell its port on the Panama Canal to a group led by Blackrock Inc., marking an escalating pressure on billionaire Li Ka-Sharhing.

This transaction will harm China’s national security and development interests, which directly violates Hong Kong’s laws on safeguarding national sovereignty, security and development interests. Instead of viewing CK and Hutchison as related Hong Kong companies, this article named BlackRock as the buyer.

CK and Hutchison are expected to sign agreements on the sale of their two Panama ports by April 2. This is a key part of a broader deal that can carry 43 facilities outside Hong Kong and mainland China on cash proceeds with over $19 billion. U.S. President Donald Trump said the deal was to win control of the waterway from Chinese influence.

“Stop trading and don’t make wrong calculations,” the paper says in the article. “Those who repeatedly emphasize that the deal is a ‘legal transaction’ under contract freedom are too naive and confused.”

The paper has imposed an “invertebral graffiti” on Trump in previous comments and “selled all Chinese”, which China’s top office in Hong Kong affairs has reposted, suggesting that criticism reflects the government’s views. The move followed several prominent politicians, including city leader John Lee, who also received overshadowed criticism. The latest article has not been republished by any Chinese organization.

Amid increasing trade tensions between the world’s two strongest economies, calls for port sales to increasingly reconsider port sales highlight the political risks of port sales. So far, Chinese officials have not given any requirements or instructions from 96-year-old Li and his company. But if Beijing does decide to take a tougher approach, it could raise concerns about the national security laws imposed on Hong Kong since 2020, which could cover a portion of the business’s assets and operations.

Although CK and Hutchison are headquartered in Hong Kong, there are limited risks to the United States and China. The conglomerate is registered in the Cayman Islands, with 12% of its revenue coming from Hong Kong and the mainland, while Europe, Canada and Australia account for the majority of the rest.

On Friday, the company reported weak profits and warned in its earnings statement that Hong Hutchison fell 4.4% in Hong Kong after the global business environment deteriorated due to geopolitical and trade tensions.

The Panama Canal “is of great significance to China’s national interests,” Tagong Kong said in his latest comment. It said that as the second largest user of waterways, China’s foreign trade stability and logistics costs are directly affected by its operations.

It said the sale of the two Panama ports could lead to increased logistics costs for Chinese companies and threaten the long-term development of China’s manufacturing and foreign trade. It added that the deal is a “specific manifestation” of the U.S. attempt to put pressure on China’s supply chain by controlling key ports.

“It is no exaggeration to say that the transaction will cause endless trouble to China’s economic and national interests after completion,” the report said.

Bloomberg reported earlier this week that several Chinese state agencies have begun investigating any potential national security or antitrust violations.

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