Photo: Wikimedia Commons.
According to a report by Infobae, due to the imminent sale of two ports in the Panama Canal by CK Hutchison to the U.S. consortium BlackRock, Chinese authorities have reportedly ordered the cancellation of active business dealings with businessman Li Ka-Shing, the owner of the Hong Kong-based company.
Additionally, anonymous sources cited by Bloomberg revealed that the order came from senior Chinese government officials and involves barring Li Ka-Shing from entering new business or commercial agreements. However, existing contracts would not be affected.
This directive is a consequence of the agreement between CK Hutchison and BlackRock for the sale of two strategic ports in the Panama Canal, as well as a significant portion of CK Hutchison’s global port properties.
The transaction will generate net profits of $19 billion for CK Hutchison and will include, in addition to the Cristóbal and Balboa ports, another 41 ports in 20 different countries. Experts suggest that Li Ka-Shing's decision to sell was a strategic move in anticipation of the new policies of Donald Trump's administration. It is worth noting that he is the richest man in Hong Kong and the eighth wealthiest in all of Asia.
President Trump celebrated the transaction, calling it a victory for the United States. In contrast, the Chinese government voiced its discontent, warning that companies cooperating with the U.S. "will have no future, no matter how much business and money they make." They also argued that the sale should be canceled for "jeopardizing national security." However, blocking the deal may prove difficult, as Hong Kong’s legal system differs from that of mainland China. Nonetheless, Chinese authorities may attempt to invoke the national security law imposed on Hong Kong to prevent the sale.
Last but not least, it is believed that Li Ka-Shing, who is 96 years old and currently ranked as the 38th richest person in the world with a fortune of $38 billion, made this decision in an effort to appease the U.S. government.
Main Source:
China no hará negocios con Li Ka-shing por vender sus puertos en Panamá, según Bloomberg – Infobae
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