China halts deals with billionaire Li Ka‑shing over US port sale
Bloomberg revealed that authorities of the People's Republic of China instructed state-owned enterprises to halt new transactions with companies associated with Hong Kong billionaire Li Shing. This move stems from dissatisfaction with Li's plans to sell ports in Panama to an American consortium.
In March, the Hong Kong-based conglomerate CK Hutchison, owned by the 96-year-old Li, agreed to sell most of its global port operations, including assets near the strategically important Panama Canal, to the American investment company BlackRock.
Recent media reports indicated that this decision has caused dissatisfaction in Beijing. The pro-Beijing Hong Kong newspaper "Ta Kung Pao" published articles criticizing the deal, which, according to the paper, "harms Chinese national interests."
The articles suggest that the forced sale of ports by the US is a short-sighted action that will only exacerbate existing tensions, as highlighted on the websites of two Chinese government departments responsible for matters related to Hong Kong.
According to Bloomberg, citing sources familiar with the matter, the directive issued by Beijing last week does not affect existing ties with Li's and his family's enterprises.
The Panama Canal and Trump's call
Bloomberg assesses that the Chinese authorities' decision to pressure Li after the deal has put his conglomerate's flagship entity in the crosshairs of the tensions between the US and China.
U.S. President Donald Trump, who has repeatedly called for the "recovery" of control of the Panama Canal, claiming it's under Chinese influence, praised the transaction.
