China Holds Off Deals With Li Ka-shing After Panama Ports Deal

There was never a question that CK Hutchison’s sale of its Panama Canal port assets to a BlackRock-led consortium might face backlash from China. The deal helped its owner, Hong Kong billionaire Li Ka-shing, escape the glare of the US President Donald Trump who’d threatened to take over the Panama Canal and falsely claimed that China operates the waterway. Sure enough, Li’s decision to pursue the sale without seeking Beijing’s approval irked China. Now, Beijing officials have told state-owned firms to hold off on any new deals with businesses linked to Li and his family, according to people familiar with the matter. There’s likely little that Chinese authorities can do to block the deal, and Li has been reducing his group’s exposure to Greater China for decades. Still, it’s a reminder of the balancing act required of businesses in the region seeking to protect their interests by staying out of Trump’s crosshairs while facing demands from Beijing.

After signing an order imposing a 25% tariff on auto imports, Trump suggested further levies on the European Union and Canada if they worked together “to do economic harm” to the US. In a late-night Truth Social post, Trump said tariffs “far larger than currently planned” could be placed on them, escalating a trade war designed to bring more manufacturing jobs to the US. Trump’s latest comments come after Canadian Prime Minister Mark Carney visited France and the UK last week to pitch a closer alliance with European allies.