Hong Kong
CNN
—
Officials in Beijing and Hong Kong spoke out Tuesday against a proposal to sell ports in the Panama Canal to a consortium led by BlackRock, sending shares in the Hong Kong-based conglomerate that owns the ports plummeting.
It’s unclear how regulators could interfere with the plan, which was announced earlier this month, given that the ports that CK Hutchison intends to offload to the group led by the US investment giant are located outside of mainland China and Hong Kong. However, observers have said Beijing’s sharp criticism of the deal means it may not ultimately go through.
When asked at a regular press conference whether China was investigating CK Hutchison’s planned sale, Mao Ning, a spokesperson for the foreign ministry, declined to answer directly. But she made Beijing’s view clear.
“I would like to emphasize that China has always firmly opposed the use of economic coercion, hegemonism and bullying to infringe upon the legitimate rights and interests of other countries,” she said.
Her comments echoed those of John Lee, Hong Kong’s leader, who earlier on Tuesday said: “We oppose the abusive use of coercion or bullying tactics in international, economic and trade relations.”
On Tuesday, Bloomberg reported that several Chinese government agencies, including the top market regulator, had been instructed by state leaders to study the deal for any potential security breaches or antitrust violations.
CNN has reached out to CK Hutchison for comment. Its shares fell as much as 5% Tuesday due to jitters about the future of the proposal, which is currently an “agreement in principle.”
Earlier this month, the group of investors led by BlackRock said it would spend $22.8 billion to buy the ports of Balboa and Cristobal on either end of the Panama Canal from CK Hutchison, as well as its controlling interest in 43 other ports comprising 199 berths in 23 countries.
Hong Kong is a former British colony that was returned to Chinese rule in 1997 under a special arrangement with Beijing, which granted the city autonomy and wide-ranging freedoms unavailable in mainland China. But a national security law that came into effect in 2020 has transformed Hong Kong’s political, legal and business landscape.
