Will Li Ka-shing eventually sell the Panama Port? Analysis points to the reasons behind

Hong Kong’s richest man Li Ka-shing’s Cheung Kong Holdings Limited recently announced plans to sell its global port operations, including the Panama Canal port, to a consortium led by BlackRock, an American company. However, this deal has faced twists and turns and the risk of being stopped by the Chinese Communist Party (CCP).

Analysts believe that Xi Jinping’s pressure on Li Ka-shing is aimed at delaying the sale, setting obstacles for this transaction as a bargaining chip in negotiations with the United States. Despite this pressure, Li Ka-shing is expected to eventually sell these ports, as President Trump holds more cards in his hand.

On March 4, Cheung Kong issued a statement announcing a preliminary agreement with the consortium led by BlackRock, with the deal expected to be finalized before April 2. This transaction was initially seen as a successful capital operation. However, with news of CCP intervention in the review process, Cheung Kong’s stock has fluctuated in recent days, raising concerns among investors about the completion of the deal.

The Hong Kong government mouthpiece, the Ta Kung Pao, has published critical articles targeting Cheung Kong and warning Hong Kong companies to align with the national stance. The CCP’s Hong Kong and Macau Affairs Office subsequently reprinted these articles, indicating Beijing’s seriousness about the matter.

Bloomberg reported on March 26 that the deal selling the operating rights of two Panama ports by CK Hutchison to BlackRock-led consortium is progressing as planned, suggesting that negotiations have not been disrupted by CCP anger over this transaction.

The CCP’s State Administration for Market Regulation indicated on March 28 that they would review CK Group’s sale of the Panama ports in Hong Kong. On March 31, CCP spokesperson Guo Jiakun stated regarding the inspection of CK Hutchison, hinting at US “economic coercion.”

The Wall Street Journal previously quoted sources saying that Xi Jinping was angry about Li Ka-shing’s move partly because Beijing’s approval was not sought beforehand.

US Secretary of State Mike Pompeo stated, echoing President Trump’s words, that the United States did not hand the canal over to China. The President made it clear that the canal was built by the US and handed over to Panama.

Commentator Wen Zhao stated on his program that Xi Jinping’s goal, whether through criticizing Li Ka-shing or engaging in anti-monopoly legal battles, is to delay the sale and create obstacles for it.

“It’s not necessarily that Xi Jinping wants to completely block this port; his aim is to use the Panama Canal port as a bargaining chip in negotiations with the US and get what he wants. Currently, the most likely deal to be made is with TikTok. If Trump releases TikTok and it remains owned by Beijing ByteDance, the Panama Canal ports can be sold to the BlackRock group. However, in reality, Trump has more cards, including tariffs.”

Wen Zhao believes that Li Ka-shing is caught between Xi Jinping and Trump. If a situation arises where he must choose either side, Li Ka-shing will likely choose Trump. Xi Jinping’s influence over Li Ka-shing is limited, while Trump has various options. If the US imposes financial sanctions on CK, their global business will suffer. Some suggest Xi Jinping could impose restrictions on the Li family, but Li Ka-shing will still lean towards Trump. Because Xi Jinping will one day step down, and the ban on the Li family will eventually be lifted. If Li Ka-shing’s family business is destroyed by US sanctions, they will have nothing left. Li Ka-shing has always been able to adapt and understand the situation clearly.