HONG KONG — Hong Kong’s leader has waded into a controversy over a prominent conglomerate’s decision to sell its Panama Canal port assets to a consortium including American investment bank BlackRock Inc., a deal that has angered Beijing and highlights how escalating tensions between Beijing and Washington can leave the Chinese financial center’s business leaders trapped in the middle.
Chief Executive John Lee told reporters at a weekly news briefing that CK Hutchison Holdings’ in-principle agreement to sell its controlling stake in a company operating ports at both ends of the Panama Canal was being discussed extensively and concerns raised about the deal deserve serious attention. He did not specify what the concerns were.
“(The) government urges foreign governments to provide a fair and just environment for enterprises,” he said. “We oppose the abusive use of coercion or bullying tactics in international economic and trade relations.”
Lee avoided a direct mention of U.S. President Donald Trump and also stopped short of criticizing CK Hutchison or tycoon Li Ka-shing’s family, which owns a controlling stake in the conglomerate.
His comments followed a somewhat veiled backlash from Beijing.
Since last Thursday, Beijing’s offices handling Hong Kong affairs have reposted two commentaries by a Beijing-backed local newspaper that blasted the deal. That has raised questions over the sale.
One of the newspaper commentaries suggested the deal is a betrayal to all Chinese and disregards national interests. The other described great entrepreneurs as patriots, but suggested that businesspeople who “dance with” predatory American politicians to reap quick profits were doomed to infamy.
The articles signaled Beijing’s disapproval of the deal, though its actual impact remains unclear.
Posting of the articles has been seen as an indirect attack on the conglomerate by Chinese leaders. Trump, who has alleged Chinese interference with the operations of the critical shipping lane, hailed the deal, saying his administration would “reclaim” the Panama Canal. Panama President José Raúl Mulino accused him of lying.
Lee said any business transaction must comply with Hong Kong’s laws. The city will handle it according to the law, he said without elaborating.
Increasing influence from Beijing is adding to pressure on business leaders in the former British colony, that was returned to Chinese rule in 1997.
CK Hutchison did not comment on Lee’s remarks…
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