China’s leaders are threatening to stop a $19 billion deal to sell a group of ports in the Panama Canal to a group of American investors, led by BlackRock. The deal, which was orchestrated by Hong Kong billionaire Li Ka-shing’s company CK Hutchison, has been deemed a potential threat to China’s control over business in the territory.
The move comes as China’s top leader Xi Jinping exercises greater control over Hong Kong’s economy, which has seen significant growth and investment in recent years. The Panama Canal deal is one of several high-profile transactions that have put Beijing under pressure to ensure its influence remains.
Hong Kong’s autonomy has been eroded in recent years, with the shutdown of local media outlets, the arrest of pro-democracy leaders, and increased scrutiny from Chinese authorities. The threat over the Panama Canal deal has raised concerns among business leaders and financiers, who worry about the potential for further interference.
“Who would dare to come to Hong Kong?” said Lew Mong-hung, a former Chinese political adviser. “If you don’t obey, don’t want to make a political sacrifice and don’t want to be a political tool, you will be criticized and persecuted.”
The Panama Canal deal was a key test of China’s control over business in Hong Kong, with many wondering if Beijing would intervene to protect its interests. While the Chinese government has so far kept quiet on the matter, comments from state media have suggested that the deal is “profit seeking” and “unrighteous”.
The move has sparked concerns about the potential impact on Hong Kong’s economy, which has seen a significant increase in investment and growth. The S&P 500 has fallen by over 5% since President Trump’s inauguration, while Hong Kong’s stock market has risen by more than 20%.
The incident highlights the ongoing struggle for control between Beijing and pro-democracy forces in Hong Kong. As the Chinese government tightens its grip on the territory, business leaders and financiers are left to wonder if they can still operate independently.
Source: https://www.nytimes.com/2025/03/20/business/trump-panama-canal-china-hong-kong.html