Hong Kong leader adds to pressure on Hutchison ports deal
Conglomerate CK Hutchison, controlled by the family of the Hong Kong’s richest man Li Ka-Shing, has found itself in the political crosshairs since announcing the $22.8 billion sale of its international ports business to a consortium of US investment firm BlackRock and Swiss-container line MSC earlier this month.
Of particular controversy is a portion of the deal which sells a 90% stake in the Hutchison Ports’ concession for two terminals located at the Pacific and Atlantic entrances to the Panama Canal.
US President Donald Trump has claimed the fact these two terminals were operated by the Hong Kong-headquartered company gave China control over the Panama Canal, and he has vowed that US will “take back control” of the key waterway.
Speaking to reporters on Tuesday Hong Kong Chief Executive John Lee, "There have been extensive discussions in society about the issue and this reflects society's concern over the matter. These concerns deserve serious attention."
The comments from the Hong Kong Chief Executive follow sharp criticism of the deal from Beijing and newspaper article republished by two Chinese government departments have questioned whether CK Hutchison was siding with the US or China.
"We oppose the abusive use of coercion, of bullying tactics in international economic and trade relations," Lee said on Tuesday, although did not name the US specifically.
CK Hutchison has remained quiet on the deal since it was announced on 4 March. At the time the company’s co-managing director Frank Sixt said: “I would like to stress that the Transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
Reuters reported on Monday that CK Hutchison would not be holding its usual earnings call for its annual results this week.
