"Panama Port Sale, Signing on April 2"… China Criticizes as "Surrender to Trump"

Hong Kong-based company CK Hutchison Holdings is proceeding as planned with the sale of operating rights for two ports at the Panama Canal to a BlackRock consortium, aiming to sign the agreement by April 2, according to Bloomberg News citing sources on the 25th (local time).

An anonymous source stated that they are currently working to finalize due diligence, tax, accounting, and other transaction terms, targeting signing by April 2 as scheduled. Bloomberg explained that this is a sign that negotiations have not yet been halted due to anger from Chinese authorities.

A ship passing through the Panama Canal. Photo by AFP

Sources reported that contracts for the two ports on both sides of the Panama Canal and a broad deal involving CK Hutchison’s other 41 ports are all underway. Upon signing, CK Hutchison will receive $19 billion (approximately 27.8635 trillion KRW).

According to stock exchange disclosures, negotiations between CK Hutchison and the BlackRock consortium are exclusive for 145 days. Sources explained that this excludes the possibility of Chinese state-owned enterprises participating in the negotiations.

There is analysis that CK Hutchison’s sale of Panama ports is due to pressure from U.S. President Donald Trump to regain control of the Panama Canal. However, CK Hutchison stated that the transaction is a commercial deal unrelated to political matters.

Nevertheless, Chinese authorities have criticized CK Hutchison for yielding to President Trump and are increasing pressure. Earlier, Bloomberg reported that Chinese authorities instructed antitrust agencies to investigate whether there are any security violations or antitrust law breaches in CK Hutchison’s overseas port business sale.

Chinese state media Hong Kong Ta Kung Pao (大公報) commented on the 21st that this deal raises concerns about violating Hong Kong laws protecting national sovereignty, security, and development interests, urging parties to withdraw from the transaction.