Li Ka-shing’s Panama Canal Port Sale Sparks US-China Tensions

Hong Kong billionaire Li Ka-shing sold Panamanian port terminals to a US-led group, causing diplomatic conflicts between Washington and Beijing because of Latin American geopolitical competition.

CK Hutchison completed its $22.8 billion deal on March 6 to unload its worldwide port terminals to a consortium led by BlackRock US due to 96-year-old Li Ka-shing’s decision. Shortly after the deal, President Trump publicly stated his administration took back control over the Panama Canal which deepened Chinese government complaints.

Chinese President Xi Jinping felt displeased with the sale because he did not know about it beforehand. The Chinese Communist Party channels supported Ta Kung Pao when the Hong Kong daily criticized Li for selling out Chinese business interests. Chinese leaders disapprove of the deal, but experts say they cannot force control over Hong Kong-based assets. Their interference would probably increase investor skepticism about doing business in Hong Kong.