Panama Takes Sudden Action — Li Ka-shing Receives Serious Warning

Li Ka-shing

[People News] On March 4, 2025, CK Hutchison Holdings, a company under Hong Kong tycoon Li Ka-shing, announced that it planned to sell 43 port assets across 23 countries in a $22.8 billion deal to a consortium led by the U.S. asset management firm BlackRock. Among the assets were a 90% stake and operational control of the Balboa and Cristobal ports on either end of the Panama Canal.

This move infuriated the Chinese Communist Party (CCP)!

Li Ka-shing Backed Down

On March 13, 15, 17, and 21, the CCP-controlled Ta Kung Pao in Hong Kong published four consecutive commentaries, harshly criticizing Li Ka-shing and accusing him of “betraying and selling out all Chinese people.”

On March 18, Bloomberg reported that Beijing had ordered the State Administration for Market Regulation and the Ministry of Commerce to review the deal to assess whether it posed a national security risk or violated anti-monopoly laws.

On March 19, The Wall Street Journal reported that CCP leader Xi Jinping was furious over Li Ka-shing’s "act-first, report-later" decision to sell his port assets to a U.S.-led consortium headed by BlackRock.

According to sources, Xi’s anger stemmed primarily from the fact that CK Hutchison did not consult Beijing in advance. This cost Beijing a crucial bargaining chip, as the Panama port issue had originally been planned as leverage in negotiations with U.S. President Donald Trump.

On March 27, Bloomberg further reported that Chinese authorities had instructed state-owned enterprises to suspend any new collaborations with Li Ka-shing or companies related to his family.

Faced with CCP intimidation and threats, Li Ka-shing finally caved in.

On March 28, the South China Morning Post cited sources saying that CK Hutchison would not proceed with signing the formal agreement on April 2, as originally scheduled, to sell operational rights of the Panama Canal ports.

That same day, China’s State Administration for Market Regulation announced it would be launching a review of the transaction.

However, Li Ka-shing’s retreat effectively confirmed what U.S. President Trump had previously warned: the CCP already has control over the Panama Canal!

Panama Takes Sudden Action

According to overseas media reports, on Monday, April 7, the Panamanian government released an audit report revealing multiple breaches of contract by a CK Hutchison subsidiary during its operation of the ports on either side of the Panama Canal. These violations caused significant losses to the national treasury. If confirmed, the company could lose its concession to operate the canal ports.

Panama’s Auditor General, Anel Flores, stated that the tax breaks and benefits granted to the company under the contract led to losses of approximately $1.3 billion to the national treasury. He also announced that legal action would be taken against the officials involved.

The final audit results will be submitted to the Panama Maritime Authority, which oversees port regulation.

Legal experts and analysts believe that if the audit confirms irregularities in the contract renewal process or if the Supreme Court deems the contract unconstitutional, the concession could be revoked.

The release of this audit report coincided with the arrival of U.S. Secretary of Defense Pete Hegseth in Panama—the first American defense secretary to visit the country in decades.

Hegseth: Reclaiming the Canal from the CCP

During his visit to Panama, a Central American nation, on Tuesday (April 8), U.S. Secretary of Defense Pete Hegseth announced that the United States intends to reclaim its influence over the Panama Canal from the Chinese Communist Party (CCP).

This visit coincides with reports that the Trump administration has asked the U.S. military to develop various plans to secure access rights to the Panama Canal. The canal was constructed by the United States over a century ago and its sovereignty was officially handed over to Panama in 1999. Trump has often remarked that the transfer was "a bad deal."

Upon his arrival, Hegseth was greeted by Panama's Minister of Public Security, Frank Abrego, and engaged in closed-door discussions with President José Raúl Mulino and other officials. Following these talks, Hegseth visited the Vasco Núñez de Balboa Naval Base to officiate a ribbon-cutting ceremony for a new dock funded by the United States. He emphasized that the U.S. will not permit the CCP or any other nation to jeopardize the canal's operations.

The Vasco Núñez de Balboa Naval Base was previously known as the U.S. Rodman Naval Base. In light of Trump's recent assertive statements, Hegseth's visit is regarded as a significant indicator of the future direction of U.S.-Panama security relations and the prospects for the canal.

After discussions with the Panamanian government, U.S. Secretary of Defense Lloyd Austin (海格塞斯) stated that the United States will deepen its security cooperation with Panamanian forces. He emphasized that the Chinese Communist Party (中共) should not be allowed to achieve espionage objectives through the business relationships of Chinese companies in the region, thereby 'weaponizing' the canal.

Austin said, 'We will work hand in hand with Panama to reclaim control of the Panama Canal from the influence of China (中共).'

'This canal was not built by China (中共), it is not operated by China (中共), and it cannot be militarized by China (中共). We will work together under Panama's leadership to ensure the security of this canal and allow it to continue serving all countries around the world,' he added.

Austin also raised concerns about Chinese companies still controlling key infrastructure in the canal area, stating, 'This gives China (中共) the opportunity to conduct surveillance activities in Panama, thereby undermining Panama's security, prosperity, and sovereignty with the United States. As President Donald Trump (唐納德‧川普) pointed out, this situation is unacceptable.'

Li Ka-shing (李嘉誠) has Been Issued a Serious Warning

On the same day that Secretary of Defense Austin arrived in Panama for a visit on Monday (April 7), the Panamanian government released an audit report, which undoubtedly serves as a serious warning to Li Ka-shing's CK Hutchison Holdings: Hesitating over the sale of its interests in 43 global ports (especially the two ports in the Panama Canal) to a consortium led by U.S. asset management giant BlackRock will only lead to more severe consequences!