Pro Beijing newspaper urges HK tycoon Li Ka shing to scrap Panama port sale

HONG KONG – A pro-Beijing newspaper has called on CK Hutchison Holdings to pull out from an agreement to sell its ports on the Panama Canal to a group led by BlackRock, marking an escalation of a pressure campaign on billionaire Li Ka Shing over the deal.

The transaction will damage China’s national security and development interests, directly violating Hong Kong’s laws on safeguarding national sovereignty, security and development interests, the Ta Kung Pao paper said in a commentary on March 21.

The article did not identify CK Hutchison as the Hong Kong company in question but did name BlackRock as the buyer.

CK Hutchison is expected to sign an agreement on the sale of its two Panama ports by April 2. It is the key part of a wider deal to offload 43 facilities outside Hong Kong and mainland China for more than US$19 billion (S$25.4 billion) in cash proceeds.

US President Donald Trump has hailed the sale as winning back control of the waterway from Chinese influence.

“Stop the transaction and do not make the wrong calculation,” the paper said in the article. “Those who repeatedly emphasise that this deal is a ‘legal transaction’ under the freedom of contract are too naive and confused.”

The paper has blasted CK Hutchison for “spineless grovelling” to Mr Trump and “selling out all Chinese people” in previous commentaries, which were reposted by China’s top office on Hong Kong affairs, signalling that the criticism reflects the government’s view.

Following the move, several prominent politicians, including Hong Kong Chief Executive John Lee, have also weighed in with veiled criticism. The latest article has not been reposted by any Chinese agencies yet.

The growing calls on Mr Li to reconsider the port sale highlight the political risks for companies based in Greater China amid