News / China hits out at Hutchison plan to sell Panama port holdings to MSC

China has slammed CK Hutchison’s plans to sell some 80% of its port holdings to MSC, including its operations at both ends of the Panama Canal.

The Hong Kong-based group has confirmed plans to sell to a consortium comprising MSC’s port division, Terminal Investment Ltd (TiL) and hedge fund giant BlackRock, claiming it would “deliver cash proceeds in excess of $19bn to the group”.

However, late last night (13 March), the Hong Kong and Macau Affairs Office (HKMAO) shared a commentary describing the deal as a “betrayal of all Chinese people”.

First published in the Beijing-backed outlet Ta Kung Pao, HKMAO republished the piece in full, which slammed the notion that the transaction was “ordinary business practice”, but resulted from US pressure in the wake of Donald Trump’s return to the White House.

“As soon as Trump took office in January, he accused China of controlling the Panama Canal, loudly declaring the US would ‘take it back’ and use military forces, if necessary,” it stated.

“Immediately afterward, US secretary of state Marco Rubio went straight to Panama to exert pressure on his first foreign trip. Later, on the eve of Trump’s first congressional speech, the news was released. All this is just a coincidence?”

The commentary further warned the US “may use” the deal as a model to set off port M&A activity around the world, forced through by political pressure.

It also claimed the US government was lining up plans to not only hit Chinese vessels with what it described as “special docking fees”, but that an executive order was being written that urged US allies to do the same or “face retaliation”.

“This deal is a hegemonic act by the US to use its national power to embezzle the legitimate rights and interests of other countries,” it added.

“It is seeking to achieve this through coercion, pressure, inducement, and other despicable means, and it is a power politics packaged as ‘commercial behaviour. The wolf ambitions of American politicians are clearly exposed.”

Having jumped 20% after the deal was announced, shares in CK Hutchison fell more than 6% this morning, with the commentary having warned it to “think twice” on the deal.