China Condemns Li Ka-shing’s Panama Port Deal with BlackRock

Shares of CK Hutchison Holdings Ltd. plunged after China’s top office overseeing Hong Kong affairs reposted a scathing critique of the conglomerate’s decision to appease U.S. President Donald Trump by selling its stake in Panama ports, Shirley Zhao and Alfred Liu reported for Bloomberg News.

The apparent disapproval from Chinese authorities highlights the growing challenge for companies caught in the escalating U.S.-China rivalry.

The Hong Kong and Macau Affairs Office republished a Ta Kung Pao newspaper commentary warning companies to carefully consider “which side they should stand on.”

The article noted that social media users had accused CK Hutchison—founded by billionaire Li Ka-shing—of “spineless groveling,” prioritizing U.S. interests over China’s, and “selling out all Chinese people” with last week’s hastily announced deal.

CK Hutchison’s stock dropped as much as 6.7% on Friday morning, its steepest decline since September 2022, reflecting investor concerns that Beijing might intervene. If completed, the deal would generate more than $19 billion in cash proceeds for Li’s company—roughly its market value before the announcement.

“Faced with such a major event and a matter of great justice, the relevant companies should think twice, think carefully about the nature and crux of the issue, and think carefully about what position and side they should stand on,” the Ta Kung Pao commentary stated.

Although the sale involves only overseas assets and is unlikely to require Beijing’s approval, the apparent disapproval from Chinese authorities highlights the growing challenge for companies caught in the escalating U.S.-China rivalry.

CK Hutchison and its sister company, CK Asset Holdings Ltd., are registered in the Cayman Islands—part of a 2015 corporate restructuring. CK Hutchison generates nearly 90% of its revenue from outside mainland China and Hong Kong, according to Bloomberg’s Sangmi Cha.