China has ordered state-owned enterprises to halt new business with companies linked to Hong Kong billionaire Li Ka-shing and his family. The move follows CK Hutchison’s decision to sell key port assets near the Panama Canal to a US-led consortium. The $19 billion sale has heightened tensions between the US and China over strategic infrastructure control.
Beijing’s Response and Business Restrictions
Senior Chinese officials issued the directive last week, instructing state-backed firms to avoid new partnerships or commercial agreements with Li Ka-shing’s businesses. However, existing deals remain intact.
Beijing fears that selling Panama-based port facilities to a US-led group could weaken China’s strategic influence in the region. US President Donald Trump has backed the deal, calling it a measure to curb China’s presence near the Panama Canal.
Regulatory Scrutiny on Li Ka-shing’s Business Empire
Chinese regulators have launched a review of the family’s investments, both domestic and overseas, to assess their financial reach. CK Hutchison, with holdings in retail, telecoms, infrastructure, and ports, remains a dominant corporate force in Hong Kong. However, the politically sensitive nature of its recent sale has intensified scrutiny from Chinese authorities.
In recent weeks, pro-Beijing Hong Kong newspaper Ta Kung Pao has accused Li Ka-shing’s firm of undermining China’s national interests. The Hong Kong and Macau Affairs Office later reposted some of these articles on its official website, fueling speculation that Beijing may attempt to block the transaction.
Chinese regulators, under central leadership guidance, have begun a formal review of the deal, signaling Beijing’s concerns over US-driven geopolitical pressure.
Strategic Concerns Over the Panama Port Sale
The ports are strategically located near the Panama Canal, a crucial global trade route contested by both the US and China. The sale to a US-backed consortium is seen as a shift in regional control.
US President Trump has framed the acquisition as a strategic win for American influence. He had previously called for reducing what he termed as Chinese control over the canal.
Following reports of China’s directive, CK Hutchison’s stock initially rose 3.6% before closing with a 1.2% gain on Thursday.
As US-China tensions escalate, Li Ka-shing’s business dealings have become part of a larger geopolitical struggle, placing his empire under heightened scrutiny from Beijing.
