Politics
ASIA, BALBOA, BEIJING, BLACKROCK, CHINA, CK HUTCHIS, CK HUTCHISON, CNN, CNN HONG KONG, COLOMBIA, CRISTOBAL, DAN BAKER, DONALD TRUMP, FINANCE, HONG KONG, INVESTMENT, JULIANA LIU, LI KA - SHING, MACAO, MEXICO, MORNINGSTAR, NORTH AMERICA, PANAMA, PANAMA CANAL, SOUTH AMERICA, TA KUNG PAO, TRADE, UNITED STATES, US, US-CHINA RELATIONS
Clara Montgomery
China Criticizes Proposed Sale of Panama Canal Ports to BlackRock
China has condemned the proposed sale of Panama Canal ports to BlackRock as a betrayal, resulting in a significant drop in CK Hutchison’s shares. This criticism highlights concerns over national interests and could jeopardize the deal amid investor anxiety. Trump’s previous remarks on the canal further complicate the situation, emphasizing its strategic importance in global trade.
China has severely condemned a plan to sell ports in the Panama Canal to the American asset manager BlackRock, labeling the proposal as “spineless groveling” and an act of betrayal towards the Chinese populace. This critique, featured in the state-controlled ‘Ta Kung Pao’ and later shared by the Hong Kong and Macao Affairs Office, resulted in a notable decline of over 6% in CK Hutchison’s shares, the Hong Kong entity that manages the ports. Such a drop signals growing investor anxiety regarding the potential challenges the deal may face, particularly concerning objections from Beijing.
BlackRock, leading a consortium of investors, announced a planned acquisition worth $22.8 billion for ports Balboa and Cristobal at either end of the canal. This group also intends to purchase CK Hutchison’s controlling stake in 43 additional ports spread across 23 countries, which they have termed an “agreement in principle.” Dan Baker, a senior equity analyst at Morningstar, noted that it remains unclear whether any regulatory approval from Chinese authorities is needed since CK Hutchison would retain ownership of its current Chinese port operations.
US President Donald Trump previously expressed intentions to regain control of the Panama Canal, which was returned to Panama in 1999 under a treaty established two decades earlier. He associated Chinese participation in port management with China’s influence over the canal. The recent sale, perceived as a beneficial move for CK Hutchison to divest a politically sensitive asset while securing a good price from BlackRock, is now under scrutiny.
The critique from the Chinese newspaper affiliated with the Communist Party accused CK Hutchison of being profit-driven while neglecting national interests, asserting the need for careful consideration on this significant matter. The commentary warned the company to reconsider its position amid such a critical issue. The Panama Canal, crucial for global trade, was originally constructed by the US and has seen operations transition to Panama since its handover in 1999.
The criticism from China reflects heightened tensions regarding foreign investments linked to national assets. The potential sale to BlackRock has led to significant market fluctuations and concerns over national pride and economic security. As this situation unfolds, it remains vital to monitor both political and economic implications on international trade routes.
Original Source: keyt.com
Post Comment