Can Hong Kong’s Hutchison ride out storm over Panama ports deal after Beijing attack?

Experts say Hutchison, part of tycoon Li Ka-shing’s empire, is now caught in a dilemma and might end up being punished by both the United States and China

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Hutchison Port Group has a 90 per cent stake in the Balboa and Cristobal docks at either end of the Panama Canal. Photo: AP

Published: 11:41pm, 14 Mar 2025Updated: 1:02am, 15 Mar 2025

Beijing’s veiled attack on Hong Kong’s CK Hutchison for selling its Panama Canal ports by posting a blistering newspaper commentary against it is an attempt to pile pressure on the conglomerate to either axe the deal or negotiate better terms that protect the national interest, observers have said.

But the experts warned on Friday that Hutchison, part of Hong Kong tycoon Li Ka-shing’s empire, was now caught in a dilemma and might end up being punished by both the United States and China no matter how it acted.

If it backed out of the deal, it could be seen as caving in to Beijing’s pressure and prompt punitive actions from the US. But if it went ahead, Li’s business empire might face political repercussions and be labelled unpatriotic even if it sought to show its loyalty by investing in mainland Chinese ports.

As things stood, Li, said the analysts, was not always in the good books of the central government.

“It’s obvious that Beijing is using an indirect way to express its discontent about the planned deal and hopes Li can mend things by turning the deal in Beijing’s favour,” said Lau Siu-kai, a consultant with the semi-official Chinese Association of Hong Kong and Macau Studies think tank.

“The planned deal is set to undermine the development of the nation’s Belt and Road Initiative and hit China’s maritime and shipbuilding industries as the US will wrest control of many overseas ports, which may drastically raise tax on Chinese vessels.”