Shares of the Hong Kong-based corporation that owns the ports fell sharply after officials in Beijing and Hong Kong voiced their opposition on Tuesday to a plan to sell ports in the Panama Canal to a group headed by BlackRock.
Given that the ports that CK Hutchison plans to transfer to the company headed by the US investment giant are situated outside of mainland China and Hong Kong, it is unclear how regulators could thwart the deal, which was unveiled earlier this month. However, analysts have warned that the deal would not eventually succeed due to Beijing’s harsh criticism.
Mao Ning, a foreign ministry official, refused to immediately respond when asked at a routine press briefing if China was looking into CK Hutchison’s proposed sale. She clarified Beijing’s position, though.
She emphasized that China has always been adamantly against the use of economic pressure, hegemony, and intimidation to violate the rights and interests of other nations.
“We oppose the abusive use of coercion or bullying tactics in international, economic, and trade relations,” she said, echoing remarks made earlier Tuesday by Hong Kong leader John Lee.
According to a Tuesday Bloomberg article, state leaders have directed a number of Chinese government organizations, including the country’s top market regulator, to investigate the transaction for any possible antitrust or security lapses.
The group of investors led by BlackRock said earlier this month that it will pay $22.8 billion to CK Hutchison to acquire the ports of Balboa and Cristobal on each end of the Panama Canal. Additionally, the group would purchase its controlling stake in 43 other ports, totaling 199 berths across 23 nations.
Under a special agreement with Beijing, Hong Kong, a former British colony, was restored to Chinese governance in 1997. This gave the city autonomy and a number of other liberties that are not accessible in mainland China. However, a 2020 national security law has changed Hong Kong’s corporate, legal, and political environment.
