Beijing Slams CK Hutchison’s $22.8 Billion Port Sale to BlackRock as ‘Betrayal’ to China
HONG KONG, March 14 (Reuters) – China’s Hong Kong and Macau Affairs Office (HKMAO) reposted a commentary criticizing CK Hutchison‘s port deal with U.S. firm BlackRock as a betrayal of China, sending shares of the Hong Kong-based conglomerate sharply lower on Friday.
The repost of the critical state media commentary by China’s governing body overseeing the territory highlights the complex geopolitical pressures the firm faces, as investors worry the deal could be derailed without Beijing’s backing.
CK Hutchison said last week it agreed to sell most of the global $22.8 billion ports business, including assets it holds along the strategically important Panama Canal, to a group led by BlackRock.
In total, the consortium will control 43 ports in 23 countries. U.S. President Donald Trump, who has called for the waterway to be removed from what he says is Chinese ownership, has hailed the deal.
On Thursday, the Ta Kung Pao newspaper based in Hong Kong published a commentary saying the deal “betrays and sells out the whole of Chinese people,” neglects national interests and shows CK Hutchison is profit-seeking.
The commentary, reposted on HKMAO’s website, said the U.S. would constrain China’s maritime trade and Chinese companies would face great risks in logistics and supply chains, impacting China’s Belt and Road initiatives.
“This deal is an act of hegemony by the U.S., which uses its state power to infringe upon the legitimate rights and interests of other countries through despicable means such as coercion, pressure, and inducement,” the commentary wrote.
“It is power politics packaged as a ‘business behavior’.”
CK Hutchison and the HKMAO did not immediately respond to requests for comment.
Shares of CK Hutchison closed down 6.4%, underperforming a rise of 2.1% in the benchmark Heng Sang Index .HSI.
A Hong Kong-founded and -listed firm owned by billionaire Li Ka-shing, CK Hutchison has said its business operations are independent
