CK Hutchison Sells Panama Port Without Beijing’s Approval—Xi Jinping Furious Over Lost Bargaining Chip with the U.S.

File photo: Li Ka-shing being interviewed by the media. (Guo Weili / Dajiyuan)

[People News] Chinese Communist Party (CCP) leader Xi Jinping is reportedly furious that Hong Kong tycoon Li Ka-shing’s CK Hutchison Group sold its Panama Canal port operations to a consortium led by the American firm BlackRock—a move that cost Xi a key bargaining chip in negotiations with the U.S.

According to The Wall Street Journal, insiders revealed that one of the main reasons for Xi’s anger is that CK Hutchison did not seek Beijing’s prior approval. The Chinese government had originally planned to use the Panama port issue as a strategic leverage point in negotiations with then-U.S. President Donald Trump, but this unexpected sale caught Beijing off guard.

When Trump first took office, he pushed for the U.S. to regain control over the Panama Canal, and he hailed this deal as a victory over China’s (CCP’s) interests in America’s backyard. This transaction has turned Panama into a symbolic battleground in the U.S.-China global power struggle. Xi Jinping’s outrage over the matter underscores how much he values the Panama Canal and his unwillingness to be perceived as a loser.

Beijing’s Propaganda Outlets Attack CK Hutchison

The Hong Kong and Macao Affairs Office recently republished two articles from the pro-Beijing Hong Kong newspaper Ta Kung Pao, signaling the CCP’s official stance: One article, titled "Don’t Be Naïve, Don’t Be Confused," accused CK Hutchison of "pursuing profit over national interest" and "forgetting its duty to the nation and the Chinese people." Another article, "Great Entrepreneurs Are True Patriots," urged Hong Kong businesses to "stand firmly with China against U.S. hegemony" to protect the nation and earn respect.

According to insiders, multiple Chinese government agencies, including the State Administration for Market Regulation and the Ministry of Commerce, have been instructed to review the transaction and explore ways to block it. However, because the assets involved are entirely located outside China and Hong Kong, it is unlikely that Beijing can prevent the sale. All parties involved remain confident that the deal will proceed as planned.

Foreign Investors Concerned About "One Country, Two Systems"

Reports suggest that this deal has put Xi Jinping in a difficult position: On one hand, Beijing must express anger over CK Hutchison’s failure to seek approval, to preserve Xi’s strongman image. On the other hand, any drastic attempt to block the sale could further escalate tensions with the Trump administration.

Additionally, Ming Pao quoted anonymous foreign investors who expressed concern that if CK Hutchison, a Hong Kong-based company, is pressured by Beijing and the Hong Kong government over this deal, it could further damage global confidence in “One Country, Two Systems.” Other foreign investors have also noted that as U.S.-China relations continue to deteriorate, the key question is whether Hong Kong can still serve as a bridge between China and the West—or if it will be forced to "choose a side."

(Republished from Radio Free Asia)