CK Hutchison reaffirms the legality of the sale of its ports in the Panama Canal amid Chinese questioning

Foto: Wikimedia Commons.

According to an article by the media outlet El Siglo, the Hong Kong-based company CK Hutchison reaffirmed the legality of the sale of its ports in Cristóbal and Balboa on the Panama Canal, in response to questions raised by the People’s Republic of China.

On this matter, the president of CK Hutchison, Victor Li, emphasized that, due to the ongoing trade conflict in the international arena caused by tariff policies, an uncertain scenario has emerged that prevents a clear understanding of how the global economy will unfold. He also stated that “Hong Kong is facing a stress test,” and therefore must “maintain cash and reduce borrowing in difficult times.”

Similarly, during a public event, the senior management of the Hong Kong-based company, owned by businessman Li Ka-shing, shared some details regarding the proposed sale of its ports in Balboa and Cristóbal, excluding assets in China and Hong Kong.

Meanwhile, co-director Dominic Lai stated that CK Hutchison will cooperate with regulatory authorities for this sale and emphasized that this “transaction requires a thorough analysis.” He also highlighted the role of the European shipping company MSC’s subsidiary, which has acted as the main investor since the beginning of the process.

It is worth noting that the sale of the Balboa and Cristóbal ports was announced in March, after CK Hutchison reached an agreement with the American company Black Rock, under which the latter would become the new owner of 90 percent of its shares in these ports.

This announcement came as the president of the United States, Donald Trump, expressed his plan to reclaim the interoceanic route, due to an alleged significant influence of the People’s Republic of China in this sector.

Specifically, the president of the company in question, Victor Li, said that CK Hutchison must be prepared to face “growing political tensions” and stated that this port transaction falls within legal boundaries.

It was this agreement that caused concern in the People’s Republic of China, as the sale would include 80 percent of the Hong Kong company’s stake “in subsidiaries and affiliates that own, operate, and develop a total of 43 ports, with 199 berths in 23 countries.”

In this regard, the State Administration for Market Regulation of China stated that, regardless of the process, the parties involved in this transaction must comply with the ongoing antitrust investigation.

In response, CK Hutchison emphasized that if circumstances arise that fall outside the legal framework, or if non-compliant events occur, the sale would not be suitable to move forward.

On another note, in a meeting held on Thursday, May 22, 2025, discussions and evaluations resumed regarding the proposed sale of CK Hutchison’s stake in the Balboa and Cristóbal ports to the consortium led by the American company Black Rock and the European company Mediterranean Shipping Company (MSC).

In that meeting, around 100 shareholders of the Hong Kong-based company had the opportunity to discuss the possible sale. In a statement, CK Hutchison noted that the company is seeking a strategic position in the international arena amid the trade conflict between China and the United States.

For his part, Paul Chan, Financial Secretary of Hong Kong, highlighted that the tariff policies imposed by the U.S. government could have a negative impact on Hong Kong and its position as a strategic city for foreign trade. He also reaffirmed his commitment to implementing measures that support local companies in the face of challenges within the international system.

Main Source:

HK Hutchison defiende legalidad de la venta de puertos panameños pese a críticas de China – El Siglo

Related News:

U.S. Secretary of Defense announces measures to curb Chinese influence in the Panama Canal

U.S. company acquired a high stake in Panama Canal ports

China retaliates against Li Ka-Shing for selling ports in Panama

You may be interested in:

China responde a declaraciones del embajador de EE.UU. – La Estrella