China scrutinising Hong Kong firm’s sale of Panama Canal ports

A Hong Kong company’s agreement to sell ports to a US financial institution is being investigated by China.

Several agencies were instructed by Beijing to look into the transaction on Tuesday, according to Bloomberg News. President Donald Trump, who has accused China of attempting to control the strategic waterway, had earlier welcomed the agreement.

Hong Kong’s CK Hutchison announced earlier this month that it had agreed to sell the majority of its $ 22.8% global ports business, including assets close to the Panama Canal, to a group led by US-based investment firm BlackRock.

China’s Hong Kong and Macau Affairs Office published comments a week after the announcement, calling the sale a betrayal of its own interests.

According to Bloomberg, senior Chinese leaders’ orders to investigate the deal, which has not yet been sealed, are being followed for security risks and antitrust violations, according to unnamed sources.

Reporters should inquire about the report, according to a spokesperson for Beijing’s Ministry of Foreign Affairs.

The spokesperson said, “I would like to point out that China has been firmly opposed to infringing on or undermining other countries’ legitimate rights and interests with economic coercion and bullying.”

John Lee, the leader of Hong Kong, made earlier comments that were reflected in those words.

Lee urged foreign governments to give businesses a fair and just environment, according to Lee to reporters. We “oppose” coercion or other abusive behavior in international economic and trade relations.

Hutchison did not respond right away to Beijing’s reports of scrutiny. The business previously stated that the deal is “purely commercial in nature and wholly unrelated to recent political news reports regarding the Panama Ports.”

According to a statement, the company agreed to 145-day exclusive contract negotiations with the BlackRock consortium.

Given that Hutchison is selling a business that is based outside of China and Hong Kong, and that is itself based in the Cayman Islands, it was not immediately clear what levers, if any, China might pull to halt the deal.