On 5 March 2025, a consortium led by BlackRock announced the purchase of 80% and 90% stakes in Hutchison Port Holdings and Panama Ports Company respectively for a total consideration of US$22.8bn from CK Hutchison Holdings, a Hong Kong-based and Cayman Islands-registered multinational conglomerate. The combined portfolio comprises 43 ports across 23 countries, including the Balboa and Cristobal ports in Panama. Contrary to popular belief, the deal does not confer control over operation of the Panama Canal itself, but rather operation of ports situated within the canal. The historic maritime route recorded traffic of 12,000 ships in 2024 and connects 1,920 ports across 170 countries, according to Reuters.
The deal does not, however, involve the sale of CK Hutchison’s ports in Hong Kong and Mainland China, which are held separately under the Hutchison Port Holdings Trust.
President Trump has hailed the deal as a reclamation of the Panama Canal by way of American investment, following calls from the White House to remove Chinese ownership and control from the key maritime hub.
Though still subject to state oversight and listed on the Hong Kong Stock Exchange, CK Hutchison has no financial ties to the Chinese government and is majority-owned by its founder Li Ka-shing and family.
The Chinese central government reacted negatively to the announcement, with the Hong Kong and Macau Affairs Office and the Liaison Office reposting articles criticising the deal. The articles, published by the Liaison Office-controlled Ta Kung Pao, accuse CK Hutchison of betraying the Chinese people and frames the deal as “an act of hegemony by the U.S.” and “power politics packaged as business behaviour.” Chief Executive of Hong Kong John Lee also noted that the deal deserves “serious attention” and that Hong Kong will handle the deal in accordance with relevant laws and regulations, though he did not comment on the articles reposted by the two state offices.
On 21 March 2025, Ta Kung Pao suggested deploying the National Security Ordinance to block the deal, arguing that it directly violates the protection of national sovereignty, security, and development as the highest principle of “one country, two systems” – the constitutional foundation for the semi-autonomy of Hong Kong.
Other ways of blocking the deal could include action by the State Administrative Market Regulation Authority, China’s antitrust regulator, which may have extra-territorial jurisdiction if the transaction has the effect of eliminating or restricting competition in the Chinese domestic market. The Measures for Security Review of Foreign Investments, which concern investments in fields of national security importance, could also empower an investigation into the deal, as they no longer exclude foreign-to-foreign transactions from the scope of review if the acquisition target involves PRC-related entities. The National Security Law, which criminalises collusion, subversion, and secession, could also be utilised if the relevant act disrupts the formulation and implementation of laws or policies of the Chinese and Hong Kong governments and is likely to occasion serious consequences; according to Felix Ng, partner at Haldanes, and Simon Young, professor at the University of Hong Kong Faculty of Law, as interviewed by Reuters.
Although headquartered in Hong Kong, CK Hutchison’s sources of revenue have witnessed global expansion and diversification. In 2024, Europe accounted for 52%, or HK$244.37bn (US$31.27bn), of CK Hutchison’s total revenue, whereas Hong Kong and Mainland China generates only 12%, or HK$58.24bn (US$7.46bn), of total revenue.
Beijing has reasons to be concerned, however, as Trump has expressed the possibility of charging Chinese ships who use the Panama Canal with extra fees, according to Hu Xijin, former editor of the Chinese tabloid Global Times. On the other hand, commotion surrounding the deal could frighten investors and businesses from having a presence in Hong Kong, as it shows that refusal to make political sacrifices would result in intense criticism and persecution, according to Lew Mon-hung, a pro-Beijing businessman and former member of the National Committee of the Chinese People’s Political Consultative Conference.
