By John Meyer, consultant in financial affairs – Eurasia Business News, March 14, 2025. Article No 1451.
China has strongly condemned a proposed deal for CK Hutchison, a Hong Kong-based conglomerate, to sell its ports in the Panama Canal and other locations to an investment consortium led by BlackRock, a major American asset management firm. This deal takes place amid increasing trade tensions between China and the United States, as Trump imposed 20% tariff on Chinese goods.
Here are the key points surrounding this controversy:
Background of the Deal
Deal Details: The proposed sale involves CK Hutchison Holdings divesting its majority stake in the ports of Balboa and Cristobal, located at either end of the Panama Canal, along with stakes in 43 additional ports across 23 countries, for approximately $22.8 billion.
Partnership: The deal is part of a partnership with BlackRock and MSC Mediterranean Shipping Company’s Terminal Investment Limited (TiL).
China’s Criticism
State Media Response: China’s state-run newspaper, Ta Kung Pao, published a strongly worded editorial criticizing the deal as “spineless groveling” and a “betrayal” of the Chinese people. The article was later shared by China’s Hong Kong and Macao Affairs Office, underscoring Beijing’s opposition.
National Interests: China views the Panama Canal as crucial for its trade with Latin America and the Caribbean, and sees the sale as undermining its influence over vital maritime routes. China is the second-largest user of the Panama Canal, accounting for 21.4% of the cargo volume transiting the canal from October 2023 to September 2024.
Impact on CK Hutchison
Stock Decline: CK Hutchison’s shares plummeted by over 6% on March 14 following China’s criticism, reflecting investor concerns that the deal might not proceed due to Beijing’s opposition.
Geopolitical Pressure: The company faces complex geopolitical pressures, with the deal being seen as part of broader tensions between China and the U.S., particularly under President Trump’s administration.
In early February Trump imposed a 10% tariff on all imports from China, which was set to increase by another 10% starting March 4, 2025.
China has responded with reciprocal tariffs on U.S. goods, including a 15% tariff on certain American imports.
Potential Consequences
Deal Viability: While Chinese regulatory approval is not required since CK Hutchison retains its Chinese ports, external pressures could jeopardize the transaction.
Read also : Gold : Build Your Wealth and Freedom
Panama’s Stance: There are speculations that Panama might use China’s criticism to reject the sale, further complicating the deal’s prospects.
Our community already has nearly 150,000 readers!
Subscribe to our Telegram channel
Follow us on Telegram, Facebook and Twitter
© Copyright 2025 – Eurasia Business News. Article no. 1451.
Eurasia Business News 