Hong Kong Leader Weighs In on Controversy Over CK Hutchison’s Panama Canal Port Sale

The sale of CK Hutchison’s Panama Canal port operations has triggered significant controversy, with strong criticism from Beijing and local figures. Hong Kong’s Chief Executive John Lee has addressed the backlash, emphasizing the need to consider public concern and maintain a fair business environment.

HK leader addresses backlash over CK Hutchison's Panama Canal sale

Growing Criticism and Beijing's Involvement

On March 18, Hong Kong's Chief Executive John Lee responded to the growing backlash over CK Hutchison’s recent sale of its Panama Canal port operations. He acknowledged that the widespread criticism of the deal, particularly from Beijing, deserved "serious attention." This sale, which took place earlier in March, saw the conglomerate owned by Li Ka-shing sell most of its port assets, including those in the canal, to a US-led consortium—amid increasing pressure from former US President Donald Trump.

Beijing’s Reaction and Public Sentiment

The deal has sparked strong criticism from Chinese authorities, with two government offices overseeing Hong Kong’s affairs republishing articles last week that questioned whether CK Hutchison had aligned itself with US interests at the expense of China. In response, Lee pointed out that the public’s concern reflected broader societal unease and emphasized the need to address the matter carefully.

Chinese Government Review and Potential Actions

Although sources report that Chinese officials have ordered a review of the sale, it remains unclear whether further action will be taken. Beijing has firmly expressed its opposition to economic coercion, with spokesperson Mao Ning stressing China’s commitment to protecting its national interests in global trade.

Stock Market Impact and Hong Kong’s Stance on Business

CK Hutchison’s stock took a hit following the announcement, with shares falling nearly 4% in Hong Kong. Lee also reaffirmed Hong Kong's stance on maintaining a fair environment for businesses, opposing any form of coercion in international economic dealings.

Further Criticism from Hong Kong’s Political Figures

The controversy has prompted further criticism, with former Hong Kong leader CY Leung accusing some local business figures of failing to recognize the larger geopolitical stakes at play. Despite the criticism, CK Hutchison maintains that the sale was unrelated to recent political pressures.