Hong Kong’s Chief Executive, John Lee, commented on the controversial sale of Panama Canal port assets by CK Hutchison Holdings to a consortium led by BlackRock. While addressing concerns related to national interests amid U.S.-China tensions, Lee did not criticize the conglomerate. Beijing’s disapproval was evident through media commentary questioning the deal’s implications.
Hong Kong’s Chief Executive, John Lee, addressed the controversy surrounding CK Hutchison Holdings’ agreement to sell its Panama Canal port assets to a consortium including BlackRock Inc. This transaction has elicited significant concern from Beijing, reflecting the ongoing tensions between China and the United States. During a weekly news briefing, Lee acknowledged the extensive discourse regarding this decision, stating that the concerns raised warrant serious attention but did not elaborate on specific apprehensions.
Lee emphasized the Hong Kong government’s expectation for foreign nations to maintain a fair and just business environment. He stated, “We oppose the abusive use of coercion or bullying tactics in international economic and trade relations.” Notably, he refrained from directly criticizing CK Hutchison or its owner, Li Ka-shing, while also sidestepping any direct mention of U.S. President Donald Trump, despite Trump’s previous comments supporting the deal.
In response to the deal, Beijing’s offices responsible for Hong Kong affairs disseminated two commentaries from a local newspaper aligned with Chinese interests. These articles criticized the sale as a betrayal of national interests. One commentary labeled entrepreneurs who collaborate with American politicians for quick profits as deserving of infamy. While these publications signal Beijing’s disapproval of the agreement, their actual influence on the sale remains uncertain.
The Chief Executive reaffirmed that any business arrangement must comply with Hong Kong’s laws, asserting that the city would approach the matter legally. Increasing scrutiny from Beijing places additional pressure on business leaders in Hong Kong, which was returned to Chinese governance in 1997. CK Hutchison refrained from commenting on Lee’s statements or the published articles.
Following the surprise announcement of the approximately $23 billion deal, which includes $5 billion in debt, the transaction’s approval is contingent upon the Panamanian government’s consent. This sale, concerning pivotal ports located at both ends of the Panama Canal, would provide the BlackRock-led consortium control over 43 ports across 23 countries. The United States relinquished control of the Panama Canal in 1999, and Panama insists that its sovereignty over the canal remains intact, despite concerns regarding foreign ownership of the ports.
The situation surrounding HK’s Chief Executive John Lee’s comments on CK Hutchison’s prospective sale of Panama Canal port assets underscores the complexities business leaders face amid escalating geopolitical tensions. While acknowledging concerns raised about the transaction, Lee refrained from direct criticism of the conglomerate or its owners. The situation is further complicated by Beijing’s apparent discontent, as highlighted by its media commentary, which stresses the national interests at stake. The deal’s fate ultimately hinges on the decision of Panamanian authorities.
Original Source: apnews.com
