Beijing's public support for criticism of Hong Kong's CK Hutchison Holdings' decision to sell off its Panama port assets is designed to send a message to every mainland and Hong Kong company doing business overseas.
Onlookers indicate that the message is unmistakable: you should prioritize nationalism over financial gain and resist external pressures.
"As clear as can be," Professor Emeritus David Zweig from the Hong Kong University of Science and Technology stated regarding Beijing’s efforts.
Are you curious about the most significant issues and global trends? Find out here. SCMP Knowledge Our latest platform features handpicked content including explainers, FAQs, analyses, and infographics, all provided by our prestigious team.
The message conveys that once a boundary for national interests is established, businesses from mainland China, Hong Kong, or abroad should align themselves accordingly.
The intensity of the backlash is meant to discourage potential sellers from offloading crucial assets to US purchasers moving forward, Zweig noted.
Nevertheless, experts warn that Beijing might have to be careful, since this stringent strategy could alarm foreign investors who are already wary due to the growing uncertainties stemming from escalating tensions between the United States and China.
The government-run Hong Kong newspaper Ta Kung Pao has published a sequence of opinion pieces criticizing the US$23 billion deal By CK Hutchinson, which is part of tycoon Li Ka-shing's corporate conglomerate, aiming to divest international ports – such as those located in Panama – to an American group. headed by the investment company BlackRock .
Later, one of the articles was republished by the Hong Kong and Macau Affairs Office, an entity under China's State Council.
CK Hutchison has faced accusations of not defending China's interests and succumbing to American pressure. U.S. President Donald Trump claimed China controlled the Panama Canal, a crucial passage for sea commerce connecting the Atlantic and Pacific Oceans.
On Tuesday, China’s foreign ministry firmly opposed “economic coercion and intimidation” when questioned regarding an ongoing inquiry by mainland authorities into a particular transaction.
Zweig noted that as nationalism and national security concerns escalate in both China and the United States, companies must be cautious to prevent getting entangled in geopolitical conflicts.
Zweig stated that America worries about losing its dominance to China, noting that this could lead Beijing to contemplate subsequent steps.
"Firms based in mainland China and Hong Kong that operate in strategically significant or delicate areas such as Panama, around the Suez Canal, and near the Malacca Strait might require consultation with their respective Chinese embassies prior to executing substantial deals," he stated.
However, Zweig pointed out that Beijing’s method of handling the situation might be seen as interfering in a commercial transaction, potentially complicating its attempts to improve China’s business climate.
Next week, top executives from 80 major multinational companies are set to gather in Beijing for an annual economic summit, the Post reported on Wednesday, with many viewing the event as a crucial moment as China's leaders try to reassure the global business community amid the trade war.
Nevertheless, Beijing seems compelled to issue warnings to businesses whenever it perceives its interests are threatened.
Last week, Chinese officials called upon Walmart executives for discussions To respond to claims that the American retail company was asking its Chinese suppliers to reduce their costs in order to counterbalance the effects of increased U.S. tariffs.
Zweig contended that Trump would have reacted just as forcefully if a U.S.-based company had sold ports in Panama to a Chinese purchaser.
Washington has become progressively cautious about China’s growing worldwide influence. Back in 2018, the U.S. House Permanent Select Committee on Intelligence released a report highlighting China’s objectives in Panama.
"The vital strategic passages are central to the PRC’s [People's Republic of China] strategy for exerting control and acquiring assets. Chinese commercial entities wield significant influence over the Panama Canal," the document stated.
Until its February decision to withdraw from China's Belt and Road Initiative, Panama was seen as an important vector for China's push to expand its influence in a region historically dominated by the US.
Panama signed a belt and road deal with China in 2017, becoming the first Latin American country to join Beijing's trillion-dollar trade and infrastructure-building project.
Chinese-owned and -operated port and harbor facilities in Panama and other locations are viewed as essential for safeguarding China’s interests and supply lines.
A professor of international relations based in Shanghai spoke under conditions of anonymity and expressed regret that Li's shipping operations in Panama had the potential to be a valuable asset for Beijing.
"Li's Hong Kong identity and international fame could have helped China expand its interests in Panama and Central America if the tycoon had aligned himself with its belt and road goals," he said.
Investments and takeovers by Chinese government-controlled companies could result in disputes.
However, Li's departure might have surprised Beijing, since they believe Li should have resisted Trump's pressures. fight back just like on TikTok ," the scholar continued.
TikTok serves as an instance of [a company] defying Washington and steadfastly safeguarding both its own interests and those of China.
Guo Hai, a foreign policy researcher with the South China University of Technology's Institute of Public Policy, also said Li's sale was misguided.
Dumping assets as part of an exit might not be the most prudent approach considering the current geopolitical challenges," Guo stated. "Ensuring asset safety is more critical than achieving immediate gains through their sale.
More Articles from SCMP
Top picks from the best: 100 Premier Tables honored the most exceptional dining establishments and drinking spots in Hong Kong and Macau.
Hugh Bowman marks his territory for the Hong Kong Derby with a double at Happy Valley
'Dedollarization' diplomacy: BRICS emphasis on alternate currencies sparks anger from Trump
Hong Kong passes its first cybersecurity bill covering critical infrastructure
This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
Post a Comment