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China Defends Panama’s Sovereignty Amid Scrutiny of Li Ka-shing’s Global Ports Sale

Published: Jun. 12, 2025 4:38 a.m. GMT+8

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Containers and cranes at the Port of Balboa at the Pacific entrance of the Panama Canal in Panama City, Panama, on Feb. 25, 2025. Photo: Bloomberg

China has thrown its weight behind Panama’s sovereignty and the neutrality of the Panama Canal, as scrutiny intensifies over a controversial deal by Hong Kong billionaire Li Ka-shing’s CK Hutchison Holdings Ltd.

The company is seeking to sell 43 international port assets in a transaction now under global review.

Responding to concerns raised by the Panama Canal Authority, China’s foreign ministry on Tuesday said it firmly supports Panama as an independent, sovereign state and emphasized its opposition to economic coercion and monopolistic behavior in global trade.

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Explore the story in 30 seconds

China supports Panama's sovereignty and the neutrality of the Panama Canal.
CK Hutchison Holdings Ltd. seeks to sell 43 international port assets to a BlackRock-led consortium.
The Panama Canal Authority and shipping firms express concerns about potential market concentration.

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Who’s Who

CK Hutchison Holdings Ltd.: CK Hutchison Holdings Ltd. is a company owned by Hong Kong billionaire Li Ka-shing. It is currently attempting to sell 43 international port assets, including terminals at both ends of the Panama Canal. This transaction is under global review due to concerns about potential monopolization of port ownership and its impact on the Panama Canal's neutrality and competition.

BlackRock: BlackRock is leading a consortium, including Global Infrastructure Partners and Mediterranean Shipping Company, to acquire 43 international port assets from CK Hutchison Holdings Ltd. This deal, currently under global review including by China, has raised concerns about potential over-concentration of port ownership and its impact on the neutrality and competitiveness of the Panama Canal.

Global Infrastructure Partners: Global Infrastructure Partners is part of a consortium, led by BlackRock, that seeks to acquire 43 international port assets from CK Hutchison Holdings Ltd. The deal includes terminals at both ends of the Panama Canal.

Mediterranean Shipping Company (MSC): Mediterranean Shipping Company (MSC) is part of a BlackRock-led consortium seeking to acquire 43 port assets from CK Hutchison Holdings Ltd. The deal raises concerns about MSC gaining disproportionate influence over global port infrastructure due to its existing control of Terminal Investment Ltd. (TiL). Critics fear this could reduce competition and threaten the neutrality of the Panama Canal.

Terminal Investment Ltd.: Terminal Investment Ltd. (TiL) is a port operator, around 70% controlled by Mediterranean Shipping Company (MSC). It is involved in a controversial deal where a consortium, including MSC, seeks to buy 43 international port assets from CK Hutchison Holdings Ltd. Concerns have been raised that this deal could overly concentrate port ownership and threaten the Panama Canal's neutrality.

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What Happened When

March 2025：: China’s State Administration for Market Regulation announced it would review the CK Hutchison port transaction under Chinese law.

April 2, 2025：: Initial signing deadline for the CK Hutchison 43-port asset sale transaction.

April 2025：: Chinese regulators warned that no party should bypass scrutiny or proceed with the transaction without approval.

May 12, 2025：: CK Hutchison publicly responded for the first time, stating the transaction would only proceed with full legal and regulatory compliance.

May 22, 2025：: At a shareholder meeting, CK Hutchison's co-managing director Lai Kai-ming reiterated the company's commitment to regulatory review.

June 10, 2025：: China’s foreign ministry publicly voiced support for Panama’s sovereignty and canal neutrality amid global review of the CK Hutchison deal.

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