Chinese authorities are reportedly reviewing the sale of a Hong Kong-based company's overseas port operations after it divested its assets near the Panama Canal following U.S. pressure and President Donald Trump's vow to "reclaim" the waterway.
Bloomberg reported on Wednesday that several government agencies, including the State Administration of Market Regulation, have been instructed to examine the transaction for potential security risks or antitrust violations by CK Hutchinson.
The outlet quotes analysts warning that heightened oversight could complicate the company's future merger and acquisition efforts, as potential partners may be wary of getting caught in geopolitical tensions between the U.S. and China. CK Hutchison is expected to finalize a sale agreement with BlackRock for the Panama ports by early April.
China has been showing its dissatisfaction with the deal, with the Hong Kong and Macao Affairs Office amplifying a series of commentaries in the pro-Beijing Ta Kung Pao newspaper that accused CK Hutchison of yielding to U.S. pressure. Former Hong Kong Chief Executive Leung Chun-ying also criticized business leaders who, in his view, prioritize commercial interests over national loyalty.
While not naming CK Hutchison or its founder, Li Ka-shing, Leung suggested that such business figures risk political isolation. Current Hong Kong Chief Executive John Lee acknowledged public concern over the issue, stating that it "deserves serious attention."
Despite the backlash, CK Hutchison's exposure to the Chinese market is limited, with only 12% of its revenue coming from mainland China and Hong Kong. The majority of its business is based in Europe, North America, and Australia. However, China has previously taken action against companies caught in geopolitical disputes, including imposing trade restrictions and pressuring multinational firms over tariff-related costs.
In parallel, the White House has instructed the U.S. military to draft options for increasing the presence of troops in Panama as the Trump administration continues to pursue its goal of "reclaiming" the canal, NBC News reported last week.
While the administration has not clarified what "reclaiming" entails, the U.S. Southern Command is reportedly preparing various strategies, including closer cooperation with the Panamanian military and, in an unlikely scenario, the use of military force to seize the canal.
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