[People News] Hong Kong’s richest man, Li Ka-shing, and his company CK Hutchison Holdings recently announced the sale of global port assets, including key ports near the Panama Canal, triggering reported "fury" from Chinese Communist Party (CCP) leader Xi Jinping. CCP-controlled media have accused Li of "betraying all Chinese people," and authorities have ordered an investigation into the deal. Some analysts speculate that the CCP may use Hong Kong’s National Security Law to punish Li, though the issue may ultimately fade away.
Professor Yuan Hongbing, a legal scholar based in Australia, revealed to Dajiyuan that Xi personally initiated the political and media attacks against 96-year-old Li Ka-shing. Yuan suggested that Li’s decision to engage in business transactions with American companies was supported by influential Chinese elite families, many of whom are opposed to Xi.
According to exclusive information obtained by Dajiyuan, Chinese Vice Premier Ding Xuexiang has dispatched investigators to Hong Kong to probe the sale of the Panama port assets, in an attempt to punish Li.
On March 4, CK Hutchison Holdings Ltd. announced on the Hong Kong Stock Exchange that it planned to sell 43 port assets across 23 countries for $22.8 billion to a consortium led by the American asset management firm BlackRock. This sale includes a 90% ownership stake and operational control of the Balboa and Cristobal ports, located at both ends of the Panama Canal.
The announcement also stated that the finalization of the agreement was uncertain, with a negotiation period of 145 days.
CCP Media Initially Silent, Now Criticizing Li Ka-shing
While the CCP and state-controlled media initially remained silent on the matter, they have recently launched an all-out attack, condemning Li for selling strategically significant Panama Canal ports and a vast logistics network spanning 23 countries to BlackRock. Media reports accuse Li of "forsaking righteousness for profit, disregarding national interests, and betraying all Chinese people."
Hong Kong’s Ta Kung Pao, a pro-Beijing newspaper, published an article on March 13 titled "Don’t Be Naïve, Don’t Be Confused," criticizing Li’s decision. The article claimed that by selling the ports to the U.S., Li had enabled "long-arm jurisdiction" for the U.S. and left Chinese ships "without a reliable port." It cited so-called "netizen" outrage, calling Li’s actions "spineless" and driven by greed, urging people to reflect on "the nature and core issue" of the sale and to "choose a stance wisely."
On March 15, Ta Kung Pao published another article titled "Great Enterprises Are Patriotic to the Core," stating that in the face of U.S. hegemony, entrepreneurs must "defend the nation" or risk having "no future" and being condemned by history.
These articles were fully republished on the websites of the Hong Kong and Macau Affairs Office under China’s State Council, signaling the official CCP position on the matter.
Hong Kong’s former Chief Executive and Vice Chairman of the Chinese People’s Political Consultative Conference, Leung Chun-ying, also criticized Li on social media, stating that Chinese businesspeople should act in alignment with the interests of the CCP regime.
On March 21, Ta Kung Pao published another article, adopting a less aggressive tone but still emphasizing that "individual and business success is inseparable from national development." The article quoted pro-Beijing figures in Hong Kong, asserting that the Panama Canal is a key node in the CCP’s Belt and Road Initiative and a vital Chinese-controlled overseas asset.
Political commentator Tang Jingyuan told Dajiyuan that "Li Ka-shing has long had a strained relationship with Xi Jinping, and the sale of Panama Canal ports has further enraged Xi." According to Tang, Xi had intended to use the Panama Canal as a bargaining chip in negotiations with former U.S. President Donald Trump, but Li’s deal with BlackRock disrupted his plans.
Meanwhile, Ma Hui, China’s Vice Minister of the International Department of the CCP, led a delegation to Panama from March 14–15, meeting with leaders of major Panamanian political parties and engaging in discussions with local think tanks. Ma stated that China is willing to enhance exchanges with Panama to build mutual trust.
Shen Mingshi, a researcher at Taiwan’s Institute for National Defense and Security Research, told Dajiyuan that "the U.S. is already training the Panamanian military in canal operations. With the U.S. firmly in control, it will be difficult for China to regain influence over the canal. Even if Panama’s government faces pressure from China, it cannot override U.S. dominance."
Shen further stated that with the U.S. now in control of the Panama port operations, the CCP’s Belt and Road Initiative has suffered a significant setback, and China’s ambitions to dominate global transportation routes have been severely disrupted—delivering a humiliating blow to Xi Jinping.
With Xi Jinping's Rise to Power, Li Ka-Shing Has Begun to Divest His Assets in Hong Kong and Mainland China
Li Ka-shing, who became the richest man in Hong Kong, is believed to have benefited from seizing the opportunities presented by China's 'reform and opening up' policies and maintaining strong relationships with high-ranking officials in the Communist Party, particularly with former party leader Jiang Zemin, which contributed to his success.
In 1998, CK Hutchison secured operating concessions for two ports in the Panama Canal, and in 2021, the company renewed its contract for an additional 25 years.
Yuan Hongbing noted that the more than forty ports sold by CK Hutchison were established during the global expansion efforts of the Jiang Zemin era. Li Ka-shing made his foray into the mainland during the Jiang Zemin and Zeng Qinghong periods, and he received special support during the Hu-Wen era, being viewed as a patriotic businessman. However, after Xi Jinping took office, he began to systematically target Li Ka-shing to undermine the influence of the previous administration, launching investigations into his companies in China from various perspectives, including taxation and business regulation. As a result, Li Ka-shing has largely completed his withdrawal of investments from China.
Yuan Hongbing emphasized that Li Ka-shing's divestment process is closely linked to the support of bureaucratic institutions within the Communist Party, and among his supporters is also Wang Qishan.
For Li Ka-shing, there is little difference between selling the two Panama Canal ports to state-owned enterprises of the Communist Party or to American companies. Yuan Hongbing revealed that information circulating within the Communist Party indicates that Li Ka-shing refrains from selling to state-owned enterprises due to the interests of numerous red aristocratic families backing him, including families of officials who served as Central Committee members or higher during the Jiang and Hu eras, as well as families of retired senior officials, all of whom prefer to sell to the United States, also as a means to gain favor with Trump.
Li Ka-shing began selling off his assets in mainland China and Hong Kong in 2013, the second year after Xi Jinping assumed power, and by 2020, he had cashed out over 100 billion yuan. Concurrently, Li made substantial investments in the UK. His actions are interpreted as a form of 'voting with his feet' against Xi Jinping. At that time, the Chinese Communist Party (CCP) public opinion also criticized Li Ka-shing, declaring, 'Don't let Li Ka-shing escape!'
Shen Mingshi remarked, 'Since Xi Jinping took office, whether through the policy of 'state-owned enterprises advancing while private enterprises retreating' or 'common prosperity', he has sensed a decline in the investment environment in China. As a result, he has divested from Chinese assets and shifted his investments overseas. Currently, only 7% of his assets are in Hong Kong, and 5% are in mainland China; he has long been prepared to mitigate risks through diversification.'
Shen Mingshi further noted, 'Although Xi Jinping professes to value private enterprises, his mindset is deeply entrenched in the policies of 'state-owned enterprises advancing while private enterprises retreating' and 'common prosperity'. Not only Li Ka-shing, but also the prominent Chinese tycoon Rong Jia has moved his assets abroad, clearly indicating a lack of confidence in the governance and future of the Chinese (CCP) government.'
The CCP's Potential Invocation of the National Security Law? Analysis: This Could Exacerbate Sino-U.S. Relations
After the CCP authorities expressed their position, Hong Kong Chief Executive John Lee Ka-chiu also made his first comments on this issue on March 18, stating that there has been considerable public discussion, reflecting concerns that warrant attention. He added that any transaction must comply with legal and regulatory requirements, and the Hong Kong government will handle related transactions 'in accordance with the law and regulations.' However, he did not directly address whether the Hong Kong National Security Law would be applied.
Bloomberg reports, citing informed sources, that several government departments of the Chinese Communist Party (CCP) have initiated an investigation into the transaction involving the Cheung Kong Group. Agencies such as the State Administration for Market Regulation have received directives from senior CCP officials to assess whether this transaction presents potential security risks or violates antitrust laws.
On the potential methods the CCP might use to discipline Li Ka-shing (Li Jiacheng), Shen Mingshi suggests that the CCP "could resort to the National Security Law. However, if it involves secrets related to the 'Belt and Road' initiative, they might also apply intelligence laws to penalize him or exert control over Li Ka-shing, demanding his cooperation, among other actions."
Shen Mingshi further explains that "Li Ka-shing's sale of the operating rights for the Panama Canal port to the United States was perceived by Trump as a significant victory; given his interests in American assets, Li Ka-shing would likely cooperate with the U.S. It would be relatively challenging for the CCP to punish Li Ka-shing directly, but his two sons, Li Zeju and Li Zekai, could become primary targets."
Tang Jingyuan argues that "the majority of Li Ka-shing's assets are located overseas, so the impact of exerting commercial pressure is limited. However, if the 'Hong Kong version of the National Security Law' is invoked, the scenario would change. The Hong Kong National Security Law is broad and can be applied to various charges."
He also noted, "The CCP's actions would entail considerable risks." Trump is intent on securing the Panama port, and if the CCP were to take it, it would substantiate Trump's claims that the CCP seeks to control critical U.S. interests, prompting a more aggressive response from Trump and leading to a rapid deterioration in U.S.-China relations. Additionally, the CCP is actively trying to attract international businesses, and any action against Li Ka-shing could drive foreign capital away from China, accelerate capital flight, and severely impact the Hong Kong business community.
Li Ka-shing is a Canadian citizen. Tang Jingyuan remarked that the actions of the Chinese Communist Party (CCP) are quite foolish. A Canadian businessman, who owns a British company, has sold several ports he acquired over the years to an American firm, with no ties to the CCP or Hong Kong. Nevertheless, 'the CCP feels the need to apply significant pressure on Li Ka-shing in public discourse, although the likelihood of actually holding him accountable is relatively low.'
In 2019, during the widespread 'Anti-Extradition' protests in Hong Kong, Li Ka-shing took out a full-page advertisement that read, 'The melon on the Huangtai, how can it be picked again?' This phrase is derived from a poem by Li Xian, the son of Empress Wu Zetian, titled 'Huangtai Gua Ci,' where Li Xian advises his mother against being excessively harsh on her children. Li Ka-shing's advertisement can be interpreted in various ways, but the predominant interpretation is a caution to the CCP not to impose further oppressive measures on Hong Kong.
Currently, Li Ka-shing and his company, CK Hutchison Holdings, appear to be at risk of being 'picked again.' However, the information that has come to light suggests that Li Ka-shing's decisions have been carefully considered and have garnered strong backing from various CCP elites, making it unlikely for Xi Jinping to 'remove' him.
(Reported by Dajiyuan Special Department reporters Cheng Gong and Ning Xin)
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