China and Hong Kong appeared to have raised concerns about conglomerate CK Hutchison's sale of its international ports portfolio, including in Panama, to an investor group led by U.S. firm BlackRock and Terminal Investment Limited (Til), the port arm of MSC owned by the Aponte family, for US$22.8 billion.
CK Hutchison, controlled by the family of Hong Kong's richest man, Li Ka-Shing, announced earlier this month that it is selling its 80% stake in 43 ports worldwide, including terminals managed by its subsidiary Hutchison Ports in Argentina, Indonesia, Mexico, Rotterdam, South Korea, Spain, and the UK.
The BlackRock-TiL consortium will also acquire a 90% stake in PPC, which oversees the ports of Balboa and Cristobal, located at the Atlantic and Pacific ends of the Panama Canal.
Hong Kong Chief Executive John Lee expressed his concerns about the deal, saying that the planned sale deserved "serious attention" without specifying what the concerns were.
"There have been extensive discussions in society about the issue and this reflects society's concern over the matter. These concerns deserve serious attention," he said, adding that the government urges foreign governments to provide a "fair and just environment for enterprises."
"We oppose the abusive use of coercion or bullying tactics in international economic and trade relations," the Hong Kong chief executive said but stopped short of directly mentioning the U.S.
Lee said, "Any transaction must comply with the legal and regulatory requirements," and the government would "handle it in accordance with the law and regulations."
The Hong Kong chief executive's comment came after China appeared to also criticise the deal after a newspaper article was republished by two Chinese government departments which questioned whether CK Hutchison was aligning with the U.S. or China.
The publication of the articles has been widely perceived as an indirect criticism of the sale agreement by Chinese leaders.
Ta Kung Pao, overseen by the Liaison Office of the Central People's Government in Hong Kong, wrote: "After the Panama Canal has been 'Americanised' and 'politicised', the U.S. will definitely use it for political purposes and implement its own political agenda, and China's shipping and trade here will certainly be subject to the U.S."
"Obviously, Trump and the U.S. have not regarded this deal as an 'ordinary business practice' at all. They have directly interfered and manipulated it brazenly and unscrupulously and have used it to push for [its] global hegemony," the Hong Kong-based Chinese-language newspaper added.
Several Chinese-run publications also came out with articles related to the Ta Kung Pao commentary.
Approximately 70% of the maritime traffic that crosses the Panama Canal either originates from or is destined for U.S. ports, making it an essential gateway for global trade.
Earlier, U.S. President Donald Trump criticized the Panama Ports Company (PPC) for allegedly ceding control of the Panama Canal to Chinese interests and suggested reclaiming authority over it.
Meanwhile, Panama has emphasized that it maintains full control over the shipping lane. Hutchison's operation of the ports does not equate to Chinese control over the canal, and selling it to a U.S.-based company does not signify any U.S. "reclaiming" of the canal.
In the announcement of the deal between CK Hutchison and TiL, Frank Sixt, CK Hutchison's co-managing director, said the transaction resulted from a "rapid, discrete but competitive process in which numerous bids and expressions of interest were received." He also emphasised that the deal is a "purely commercial move" for the port operator.
Sixt noted that the transaction valuation agreed in principle is "compelling, and the transaction is clearly in the best interest of our shareholders."
"I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports," the CK Hutchison, co-managing director, added.
