‘Bullying tactics’: China, Hong Kong out to scuttle BlackRock’s Panama Canal ports deal amid Donald Trump’s threats

Asian conglomerate CK Hutchison's deal to sell its Panama Canal ports to a consortium led by America’s BlackRock Inc is facingintense criticismfrom Hong Kong and China.

Earlier this month, billionaire Li Ka-shing-owned CK Hutchison had signed a $23 billion deal to sell most of its ports operations, including those in the Panama Canal,to a US-led consortium following pressure from US President Donald Trump. The Panamanian ports of Cristobal and Balboa are located at the Atlantic and Pacific ends of the canal, respectively.

According to the deal, the consortium would also take over Hutchinson’s controlling stakes in 43 ports in 23 other countries.

"There have been extensive discussions in society about the issue and this reflects society's concern over the matter," John Lee, the chief executive of the largely autonomous Chinese city, said on Tuesday.

"These concerns deserve serious attention," he added.

To thwart the deal, China has opened investigations into potential antitrust and national security concerns through several agencies, including State Administration of Market Regulation, reported Bloomberg.

China's Hong Kong and Macau Affairs Office reposted two state media commentaries last week, critical of the deal and asking CK Hutchison "which side it stands on".

Threats to take back canal

The deal was seen as a solution to US President Donald Trump’s threats to take back the canal.

Trump has repeatedly stated that China controls shipping in the Panama Canal, which was built by the United States more than a century ago to link the Pacific and Atlantic oceans.

The shipping route sees 5 per cent of global maritime trade.

The HK leader further said any business transaction must comply with Hong Kong law, and the city will handle the deal according to law.

He urged foreign governments to "provide a fair and just environment" for Hong Kong enterprises without naming the United States.

"We oppose the abusive use of coercion, of bullying tactics in international economic and trade relations," he added.