A geopolitical storm is brewing in the maritime trade industry as China’s top office on Hong Kong affairs publicly rebukes CK Hutchison for its decision to sell its Panama Canal ports to U.S.-based BlackRock.
China’s Hong Kong and Macau Affairs Office has amplified criticism against CK Hutchison Holdings, reposting a state-backed article warning the Hong Kong-based conglomerate to reconsider its allegiance. The sharp rebuke follows CK Hutchison’s recent agreement to sell a 90% stake in Panama Ports Company—operator of the Balboa and Cristobal terminals—to a BlackRock-led consortium for $22.8 billion. The deal also includes the sale of 43 other global ports outside China.
The sale, hailed by Donald Trump, was framed as part of Washington’s broader strategy to curb Chinese influence over the Panama Canal. The move prompted backlash in Chinese state media, with Ta Kung Pao publishing an editorial denouncing the decision as a betrayal of national interests. The article, citing purported online reactions, accused CK Hutchison of engaging in “spineless groveling” to Western pressure, a claim that has since been echoed by government entities.
“In the face of such a major event, the companies concerned should think twice about the nature of the issue and what is at stake,” the editorial warned. The Chinese-language piece argued that the deal would inevitably serve U.S. strategic interests, asserting that an “Americanized” Panama Canal would be weaponized against China’s trade and shipping activities.
Following the commentary, CK Hutchison’s stock took a 6% hit on Friday, a stark contrast to the 22% surge it saw after announcing the deal earlier in the week. The company’s Co-Managing Director Frank Sixt attempted to quell speculation, emphasizing in a press release that the transaction was “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
Despite this assurance, China’s Foreign Ministry Spokesperson Lin Jian signaled Beijing’s discontent, reiterating that China supports Hong Kong companies expanding overseas but opposes “any abuse of coercion and pressuring in international trade and economic relations.” The diplomatic undertone suggested Beijing views the sale as yet another episode in the ongoing U.S.-China power struggle over global trade routes.
Meanwhile, reports from Reuters indicate that the Trump administration has requested the Pentagon to explore “credible military options” to safeguard U.S. access to the Panama Canal. This aligns with Trump’s broader trade agenda, which has consistently framed Chinese-controlled assets in strategic locations as a national security threat.
China’s state media reaction underscores the broader implications of the deal beyond corporate strategy. The Ta Kung Pao editorial suggested that Hong Kong’s status as a global logistics hub could suffer if Beijing perceives CK Hutchison’s move as undermining national interests. It further accused Washington of manipulating the deal for its own geopolitical gain, describing U.S. involvement as “brazen and unscrupulous.”
As tensions escalate, the fate of CK Hutchison’s deal now sits at the intersection of commerce and geopolitics. Investors, industry players, and political analysts alike will be watching closely to see whether Beijing applies additional pressure or whether the sale proceeds without further interference.
