CK Hutchison Halts Panama Port Sale as China-U.S. Tensions Escalate

Hong Kong conglomerate CK Hutchison will not sign a deal next week to sell its Panama port operations to a BlackRock-led group, sources say. The delay follows mounting pressure from Beijing, which is now conducting an antitrust review of the sale. The transaction, part of a $22.8 billion global ports deal, has drawn political scrutiny, with the U.S. supporting the sale and China opposing it.

Sale Delay Raises Questions Over China’s Influence

CK Hutchison, controlled by Hong Kong billionaire Li Ka-shing, had planned to finalize the sale of two Panama port operations by April 2. However, two sources with direct knowledge confirmed the deal will not be signed as scheduled. One source cited “obvious reasons” but did not elaborate. Despite the delay, talks are ongoing, and the deal has not been canceled.

The Chinese market regulator announced an antitrust review, stating it would evaluate the deal to protect fair competition and public interest. This review adds another layer of uncertainty to the transaction, which involves a total of 43 ports across 23 countries.

Geopolitical Tensions Over Panama Canal

The deal has drawn strong reactions from China, which opposes CK Hutchison’s decision to sell its ports business. The U.S. sees the acquisition as a strategic move to regain influence over the Panama Canal, a key global trade route. President Donald Trump previously expressed support, emphasizing the importance of controlling the region.

China’s response has been sharp. Pro-Beijing media in Hong Kong have criticized the deal, calling it a betrayal. China’s Hong Kong and Macau Affairs Office reposted these articles, fueling speculation that Beijing might attempt to block the sale. Analysts suggest this could set a precedent for Chinese scrutiny of other major business divestments involving U.S. buyers.

A CK Hutchison subsidiary operates two of the five ports near the Panama Canal. The company received its first concession in 1998, which was renewed for another 25 years in 2021. With the sale under review, Panama’s Comptroller General announced an audit of the concessions, expected in the coming weeks.

Meanwhile, Bloomberg News reported that Chinese authorities have advised state-owned firms to pause any new deals with businesses linked to Li Ka-shing’s family. This development underscores the growing political and economic tensions surrounding the port sale.

Future Uncertainty Over Strategic Asset Control

As negotiations continue, the outcome of China’s antitrust review remains uncertain. If Beijing successfully blocks the sale, it could reshape how Chinese firms approach global divestments. For now, CK Hutchison and BlackRock are proceeding with discussions, though political and regulatory hurdles remain significant.

The Panama Canal plays a crucial role in global trade, handling about 3% of the world’s sea-borne shipments. The delay in CK Hutchison’s port sale highlights the broader geopolitical struggle for influence in the region, with China and the U.S. closely watching every move.