【Epoch Times, May 20, 2025】 Hong Kong’s richest man Li Ka-shing’s company, CK Hutchison, recently issued a statement that their highly anticipated port deal will strictly adhere to all laws and regulations and will not be executed in any illegal manner. This has once again put the Panama Canal and Li Ka-shing in the spotlight of US-China tensions.
In January this year, US President Trump called for the US to regain control of the Panama Canal in his inauguration speech. The US government believes that China is increasing its influence in Latin America through large-scale infrastructure projects, a matter that both Democratic and Republican parties in the US continue to monitor closely.
Panama regained control of the Panama Canal from the US in 1999, with the country granting the concession rights of the two main ports at each end of the canal to Hong Kong-based CK Hutchison, founded by Li Ka-shing, in 1998 and renewing it for 25 years in 2021.
These two ports handle approximately 3% of global maritime trade. Trump emphasized that the canal was not handed over to China but to Panama, and now the US intends to take back control.
Amid escalating tensions, CK Hutchison announced in March that it will sell all 43 of its port businesses in 23 countries to an investment group led by BlackRock, including the two main ports at each end of the Panama Canal.
Analysts pointed out that CK Hutchison negotiated a good price for the port sale, with BlackRock agreeing to acquire some ports for $19 billion in cash, which is almost equivalent to the entire market value of the conglomerate.
Two days after this announcement, Trump mentioned the Panama Canal deal during a speech in Congress, stating that the US government has “already begun” to take back control of the canal and referenced the agreement.
According to Bloomberg, sources revealed that in mid-March, Chinese authorities ordered state-owned enterprises to cease new business dealings with enterprises related to Li Ka-shing’s family. China’s antitrust regulator stated that without their approval, this transaction should not proceed.
Pro-Beijing media in Hong Kong has condemned Li Ka-shing for “kowtowing” and “selling out all Chinese people,” with the Liaison Office also reposting this criticism. The Chinese Communist Party warned companies to carefully choose which side they should stand on and demanded that entrepreneurs become “proud patriots.”
CK Hutchison reaffirmed on May 12 that the port sale transaction “will never take place in any illegal or non-compliant manner.”
The Panama port deal is not the first time Li Ka-shing has angered Chinese authorities. Since the current Chinese leader took office in 2012 and adopted a tough stance on Hong Kong, Li Ka-shing has been criticized by Chinese state media.
In 2015, following a restructuring of the Cheung Kong Group and the sale of many domestic assets in China, Li Ka-shing registered CK Hutchison and Cheung Kong Holdings in the British Virgin Islands. Chinese official media viewed this as a sign of weakened confidence in the Chinese economy and subjected Li Ka-shing to severe criticism. Xinhua’s think tank even published a critical article titled “Don’t Let Li Ka-shing Escape.”
At that time, Li Ka-shing declared his support for Beijing’s leadership, stating, “My companies are always looking for investment opportunities globally, including mainland China.” Despite this, his enterprises continued to move cash flows out of mainland China and Hong Kong.
Between 2015 and 2018, Li Ka-shing divested a significant amount of assets in mainland China and Hong Kong, including Shanghai’s Oriental Plaza and Central Plaza in Hong Kong, with total transactions exceeding HK$250 billion. Simultaneously, he heavily invested in the European market, especially in the UK, acquiring ports, telecommunications, and utilities assets.
During the 2019 Hong Kong extradition bill protests, Li Ka-shing urged protesters to exercise restraint and publicly expressed his hope for the Hong Kong government and Beijing to “treat young people humanely.” Chinese authorities viewed this as indirect support for the protests and responded harshly, with the Political and Legal Affairs Committee publicly accusing Li Ka-shing of “condoning crime” and “watching Hong Kong fall into the abyss.”
In 2019, Li Ka-shing further expanded his overseas investments with CK Asset Holdings acquiring the UK’s largest pub group and brewery, Greene King, for £4.6 billion (approximately $5.6 billion).
Bloomberg analysis indicates that for decades, Li Ka-shing’s enterprises have been reducing investments in Greater China. Currently, his conglomerate focuses on retail, telecommunications, ports, and utilities industries, with only 12% of revenue coming from mainland China and Hong Kong markets. His private investment firm, Horizons Ventures, also focuses on overseas markets.
Moreover, the $19 billion cash from selling the two Panama ports could offset some of the losses from reduced cooperation with Chinese state-owned enterprises in the future.
Analysts believe that this will make it harder for Li Ka-shing to be pressured by Chinese authorities during commercial transactions, giving him greater flexibility and autonomy.
Furthermore, in an interview with the Financial Times, Zeng Ruisheng from the School of Oriental and African Studies at the University of London suggested that other Hong Kong tycoons are closely monitoring whether Beijing will intervene in the Panama port deal. If Li Ka-shing receives excessive punishment, wealthy individuals may consider relocating more business out of Hong Kong.
He believes that Beijing’s pressure on Li Ka-shing will have a “counterproductive effect.”
(Some information in this article is referenced from Bloomberg)