China’s antitrust regulator announced it will review Hong Kong conglomerate CK Hutchison‘s planned sale of strategic Panama Canal ports to a BlackRock-led consortium, throwing the politically sensitive $22.8 billion deal into doubt days before its expected signing.
The State Administration for Market Regulation (SAMR) said Friday it would examine the transaction “to protect fair competition in the market and safeguard the public interest,” according to a statement on its official website.
The review targets a deal that has already sparked geopolitical tensions between Beijing and Washington over the strategically important shipping route. US President Donald Trump previously complained of Chinese influence over the canal and vowed the US would be “taking it back.”
The ports sale, part of a larger agreement covering 43 ports across 23 countries, was expected to be signed by April 2. That timeline will now be delayed, according to sources familiar with the matter.
Chinese state-backed newspaper Ta Kung Pao previously called the sale a “spineless, grovelling” move that “betrayed and sold out all Chinese people,” language that analysts say signals high-level government disapproval.
“It has become highly politicized,” said Martina Fuchs, a business correspondent for Chinese state-run Xinhua News Agency. “CK Hutchison being thrust into the crosshairs amid the escalating China-US trade war reflects how both powers are battling for control of the strategic waterway.”
SAMR has collected information on the case since last week and consulted at least one industry expert, according to sources familiar with the regulator’s work. The expert suggested imposing conditions to ensure the deal would not disadvantage Chinese shipping companies.
CK Hutchison, controlled by billionaire Li Ka-shing’s family, has increasingly found itself caught between Chinese and American interests. The company’s shares soared after announcing the deal on March 4 but plunged following the critical Chinese state media coverage.
Hong Kong leader John Lee has said the deal deserves “serious attention,” while The Wall Street Journal reported that Chinese President Xi Jinping was angered that CK Hutchison had not sought his approval before pursuing the transaction.
The 96-year-old Li, who passed day-to-day control of his empire to his son Victor in 2018, has had a complex relationship with Beijing. His political influence reportedly waned following Xi’s rise to power in 2012, and his companies began divesting from China around 2015.
Bloomberg reported Thursday that Beijing issued a directive to state-owned enterprises to pause new business with CK Hutchison and its affiliates.
The conglomerate makes about 12% of its revenue from mainland China, an amount of more than $300 million in 2024, making it vulnerable to potential pressure beyond formal regulatory channels.
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