Business
China pushes back on BlackRock Panama Canal deal lauded by Trump
By Simone Del Rosario (Business Correspondent), Brent Jabbour (Senior Producer), Emma Stoltzfus (Video Editor)
- China is reportedly investigating a Hong Kong company’s $19 billion deal to sell ports in the Panama Canal to BlackRock. The deal has been celebrated by President Donald Trump.
- Hong Kong Chief Executive John Lee said concerns about the deal “deserve serious attention.”
- In the wake of criticism, Hong Kong company CK Hutchison canceled press and investor calls planned around its earnings report this week. The company’s stock dropped 5% on news of the investigation.
Full Story
China is pushing back against a business deal that would cede control of major Panama Canal ports to an American business. Control of the major trade route has been a point of contention for President Donald Trump since taking office.
Media Landscape
See how news outlets across the political spectrum are covering this story. Learn more
Left 24%
Center 43%
Right 32%
Bias Summary
- The Chinese government criticized Li Ka-shing for selling port assets to BlackRock, calling it a betrayal of Chinese interests.
- Beijing criticized Li Ka-shing for betraying Chinese interests after CK Hutchison announced plans to sell its Panama ports to BlackRock for $22.8 billion.
- The Chinese State Council called for Li to reconsider the transaction, warning of risks to Chinese logistics and supply chains.
- Chinese netizens expressed outrage at the deal, labeling it a trade of integrity for profit and a betrayal of national interests.
- CK Hutchison shares dropped more than 6% after China criticized its deal with BlackRock for ports in Panama, as reported by Ta Kung Pao and CNN.
- A consortium led by BlackRock is planning to spend $22.8 billion to buy ports from CK Hutchison, which includes a significant interest in various international ports.
- China labeled the proposed sale a "betrayal" of the Chinese people, urging CK Hutchison to reconsider its involvement, according to commentary from Ta Kung Pao.
- The Panama Canal, key to international trade, was handed over to Panama in 1999, and 4% of the world's maritime trade passes through it.
- CK Hutchison will not hold earnings conferences this week due to pressure from Beijing regarding a deal with a consortium led by BlackRock, according to sources with knowledge of the matter.
- CK Hutchison agreed to sell its global ports business, including assets near the Panama Canal, to a consortium led by BlackRock for more than $19 billion in cash proceeds.
- China's Hong Kong and Macau Affairs Office criticized the deal as a betrayal of national interests, stating that CK Hutchison is profit-seeking, which caused its shares to fall sharply.
- An analyst noted that it is rare for a blue-chip company like CK Hutchison to not hold an earnings conference, highlighting the unusual situation surrounding this deal.
Bias Comparison
Media outlets on the left
framed it as an “exposure” of corporate power in U.S.-China “rivalry,” highlighting potential U.S. control over key ports and citing netizens who view the deal as “betraying” national interests.
Media outlets on the right
emphasized Beijing “fuming” and “asserting a right to influence,” focusing on the immediate financial implications for involved companies.
Media outlets in the center
de-emphasized strong emotional framings, describing the deal as a “political hot potato.”
Report an issue with this comparison
Bias Distribution
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Left
+0
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Right
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Untracked Bias
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130 other sources covering this story
Total News Sources
130
Leaning Left
14
Center
25
Leaning Right
19
Last Updated
1 month ago
Bias Distribution Powered by Ground News™
“China is operating the Panama Canal,” Trump said during his inaugural address in January. “And we didn’t give it to China. We gave it to Panama, and we’re taking it back.”
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The details behind the deal
Earlier in March, Hong Kong-based conglomerate CK Hutchison agreed to sell a large chunk of its port business to American investment giant BlackRock in a deal worth $19 billion. The deal would allow BlackRock to control two major ports on either side of the Panama Canal.
President Trump lauded the deal during an address to a joint session of Congress.
“My administration will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump said in the speech on March 4. “Just today, a large American company announced they are buying both ports around the Panama Canal, and lots of other things having to do with the Panama Canal and a couple of other canals.”
Hong Kong and China push back
But Hong Kong Chief Executive John Lee shared his concerns about the BlackRock deal and its impact on Hong Kong on Tuesday, March 18.
“These concerns deserve serious attention,” Lee said of scrutiny over the deal.
Meanwhile, Chinese authorities are investigating CK Hutchison’s sale to BlackRock, according to a report from Bloomberg. Studying the deal for any possible security breaches or antitrust violations is reportedly at the heart of the investigation.
China previously condemned the deal, warning that the transaction would severely affect its influence over crucial shipping routes. Last week, Ta Kung Pao, a Hong Kong newspaper owned by the Chinese government, ran a piece criticizing the sale. The post was republished to a Chinese government agency’s site that oversees Hong Kong policy.
“The United States will definitely use it for political purposes and promote its own political agenda,” it reads. “China’s shipping and trade here will inevitably be subject to the United States.”
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Can China stop the deal?
It’s unclear what the Chinese government could do to stop the deal. The ports in question are outside of both China and Hong Kong. But after facing criticism from Beijing, CK Hutchison decided against holding press and investor calls this week around its earnings report. The company’s stock fell 5% on news of an investigation.
Tags: BlackRock, China, Chinese Foreign Ministry, Donald Trump, Hong Kong, Panama, Panama Canal, People’s Republic of China, Trade
[Simone Del Rosario]
China is pushing back against a business deal that would put more Panama Canal operations in the hands of American business.
[Donald Trump]
China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back. (Applause.)
[Simone Del Rosario]
Back in March, President Donald Trump celebrated a $19 billion deal by American investment giant BlackRock. Hong Kong conglomerate CK Hutchison agreed to sell a huge chunk of its port business to BlackRock, which includes two ports at each end of the Panama Canal.
[Trump]
“Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.”
[Simone Del Rosario]
But across an ocean, resistance is swelling.
[John Lee]
“These concerns deserve serious attention.”
[Simone Del Rosario]
Hong Kong Leader John Lee piled onto Chinese criticism of the deal on Tuesday.
Meanwhile, Bloomberg reports Chinese authorities are investigating the CK Hutchison’s sale, citing people familiar with the situation.
At the heart of the investigation is studying the deal for any possible security breaches or antitrust violations.
China previously condemned the deal, warning it would severely affect its influence over crucial shipping routes. Last week, Ta Kung Pao, a Hong Kong newspaper owned by the Chinese government, ran a piece criticizing the sale.
That post was republished to a Chinese government agency’s site that oversees Hong Kong Policy.
The piece says if the deal is finalized, “The United States will definitely use it for political purposes and promote its own political agenda. China’s shipping and trade here will inevitably be subject to the United States.”
President Trump has made operations at the Panama Canal a point of contention since taking office.
[Donald Trump]
“The Panama Canal was built by Americans for Americans, not for others, but others could use it. But it was built at tremendous cost of American blood and treasure. 38,000 workers died building the Panama Canal.”
[Simone Del Rosario]
The BlackRock bid came to fruition after CEO Larry Fink reportedly called the president himself to present the idea.
On the news China is poking around, CK Hutchison’s stock dropped 5%.
It’s unclear what the Chinese government could do to stop the deal. The ports in question are outside of both China and Hong Kong.
But after facing criticism from Beijing, CK Hutchison decided against holding press and investor calls this week around its earnings report.
The richest person in Hong Kong, Li Ka-shing, ran CK Hutchison as chairman from 1950 to 2018. Since then, he’s been the company’s senior adviser.
For SAN, I’m Simone Del Rosario.
Media Landscape
See how news outlets across the political spectrum are covering this story. Learn more
Left 24%
Center 43%
Right 32%
Bias Summary
- The Chinese government criticized Li Ka-shing for selling port assets to BlackRock, calling it a betrayal of Chinese interests.
- Beijing criticized Li Ka-shing for betraying Chinese interests after CK Hutchison announced plans to sell its Panama ports to BlackRock for $22.8 billion.
- The Chinese State Council called for Li to reconsider the transaction, warning of risks to Chinese logistics and supply chains.
- Chinese netizens expressed outrage at the deal, labeling it a trade of integrity for profit and a betrayal of national interests.
- CK Hutchison shares dropped more than 6% after China criticized its deal with BlackRock for ports in Panama, as reported by Ta Kung Pao and CNN.
- A consortium led by BlackRock is planning to spend $22.8 billion to buy ports from CK Hutchison, which includes a significant interest in various international ports.
- China labeled the proposed sale a "betrayal" of the Chinese people, urging CK Hutchison to reconsider its involvement, according to commentary from Ta Kung Pao.
- The Panama Canal, key to international trade, was handed over to Panama in 1999, and 4% of the world's maritime trade passes through it.
- CK Hutchison will not hold earnings conferences this week due to pressure from Beijing regarding a deal with a consortium led by BlackRock, according to sources with knowledge of the matter.
- CK Hutchison agreed to sell its global ports business, including assets near the Panama Canal, to a consortium led by BlackRock for more than $19 billion in cash proceeds.
- China's Hong Kong and Macau Affairs Office criticized the deal as a betrayal of national interests, stating that CK Hutchison is profit-seeking, which caused its shares to fall sharply.
- An analyst noted that it is rare for a blue-chip company like CK Hutchison to not hold an earnings conference, highlighting the unusual situation surrounding this deal.
Bias Comparison
Media outlets on the left
framed it as an “exposure” of corporate power in U.S.-China “rivalry,” highlighting potential U.S. control over key ports and citing netizens who view the deal as “betraying” national interests.
Media outlets on the right
emphasized Beijing “fuming” and “asserting a right to influence,” focusing on the immediate financial implications for involved companies.
Media outlets in the center
de-emphasized strong emotional framings, describing the deal as a “political hot potato.”
Report an issue with this comparison
Bias Distribution
Far
Left
Left
+0
Click to close
Click to close
Click to close
Click to close
Far
Right
Right
+0
Click to close
Untracked Bias
Click to close
130 other sources covering this story
Total News Sources
130
Leaning Left
14
Center
25
Leaning Right
19
Last Updated
1 month ago
Bias Distribution Powered by Ground News™
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