Hong Kong’s richest man Li Ka-shing’s company, CK Hutchison Holdings Ltd., recently announced the sale of its port operations in 43 ports across 23 countries, including key assets at both ends of the Panama Canal, to an investment group led by the American company Black Rock. This move has angered the Chinese Communist Party (CCP). The CCP propaganda outlet published an article criticizing Li Ka-shing’s company for selling the Panama Canal ports, likening it to “selling out the country.” The CCP’s superior agency, the Hong Kong and Macau Affairs Office of the State Council, later republished this article. Analysts suggest that the CCP’s condemnation of Li Ka-shing effectively corroborates Trump’s accusations against the CCP.
According to reports, the Panama Canal is a crucial global maritime passage through which 6% of global maritime trade travels, with China accounting for 21% of the shipping volume, acting as a core gateway for China’s trade with Latin America and the Caribbean.
The article also argues that the Panama Canal being “Americanized” and politicized means that the U.S. will undoubtedly use it for political purposes, potentially constraining China’s maritime trade, branding CK Hutchison as “disregarding national interests” and “betraying all Chinese people.”
On a geopolitical talk show, commentator Henghe pointed out that the rise of CK Hutchison’s stocks following the news of the port sale indicates commercial success. The criticism from the CCP is seen as a political failure in their eyes, as there is no apparent political dominance. The article’s use of anonymous online opinions and the CCP’s belief that ports can be used against enemies reveal broader strategic considerations.
The commentator highlighted the CCP’s growing dissatisfaction, seeing the sale as a blow to its expansionist ambitions, particularly concerning its Belt and Road Initiative. Ultimately, it is seen as a strategic move by Li Ka-shing to distance himself from being seen as a tool of the CCP in global expansion efforts.
Since the completion of the Panama Canal by the U.S. in 1914, control of the canal has gradually shifted to the Panamanian government, with treaties ensuring its neutrality and operation. However, recent events raise concerns over transparency in operations and possible debt-trap diplomacy associated with China’s Belt and Road Initiative.
In 2018, Panama became the first country in the Western Hemisphere to join China’s Belt and Road Initiative, shortly after severing ties with Taiwan. With the Panama Canal’s strategic importance in global trade and geopolitical maneuvers, the recent sale to an American group has raised eyebrows and ruffled feathers in Beijing.
Reports suggest that negotiations for the port sale involving prominent figures like Li Ka-shing’s son Li Zeju and Black Rock’s CEO Larry Fink were concluded through video conferences and phone calls over several weeks, reflecting the broader implications of global power plays in a crucial maritime passageway.