CK Hutchison Holdings’ decision to sell 43 of its overseas ports — including strategic locations such as two Panama Canal ports — to American investment firm BlackRock without an open tender has ignited widespread public concern.
After China’s national regulatory authorities invoked the Anti-Monopoly Law of the People’s Republic of China (AML) to review the deal, Hutchison announced that it will hold off on further action for the time being.
While this temporary pause signals that CK Hutchison Holdings, led by Hong Kong tycoon Li Ka-shing, is aware of the public backlash, the lack of a clear statement from the company suggests it still intends to complete the deal. This raises pressing questions about the implications of selling these strategically important assets to a US-based entity and the broader risks to China’s national interests. The sale of these ports to the US company, especially the two in the Panama Canal — a critical location for global shipping — poses significant risks to China. BlackRock’s chairman Laurence D Fink has publicly stated that completing this acquisition would make the firm the world’s leading port operator with 100 ports globally. This would grant BlackRock a dominant position in the global shipping and logistics industry. Moreover, BlackRock’s partnerships with major shipping giants Terminal Investment Ltd and Mediterranean Shipping Co could lead to the creation of a monopolized market structure. Such consolidation would give BlackRock significant leverage in the shipping industry, potentially disadvantaging Chinese companies and trade routes. What is even more concerning is the potential influence of US government regulations. The US has a history of imposing unfair and hostile measures against Chinese businesses, and recent reports suggest that it is considering imposing an additional $1.5 million port fee on all Chinese-manufactured cargo ships. Allowing a US-based entity like BlackRock to control these ports could expose Chinese shipping and trade to further discriminatory measures. China’s decision to invoke the AML to review this transaction is not only justified but also aligns with international norms. The AML has long been a cornerstone of China’s efforts to safeguard market fairness, preventing dominant players — whether domestic or foreign — from abusing their positions to harm Chinese enterprises. Article 2 of the AML provides a solid legal basis for its extraterritorial application, allowing China to regulate anticompetitive conduct that adversely affects its domestic market. This approach is consistent with antitrust laws in other major jurisdictions, which have a long history of applying similar principles to protect national interests.
For instance, in November 2022, the European Commission ruled that Meta, the parent company of Facebook, had monopolized advertising on social media platforms, thereby violating European Union competition laws. As a result, Meta was fined 800 million euros ($885 million), demonstrating the EU’s tough stance on antitrust violations. Similarly, the US has its own mechanisms for safeguarding national interests in business transactions. The Committee on Foreign Investment in the United States (CFIUS) oversees foreign investments in American companies, particularly in strategic sectors such as defense, transportation, and energy. Foreign companies seeking to acquire US businesses in these sectors must first obtain the CFIUS’ approval. In 2017, during Donald Trump’s first term as US president, a Chinese company attempted to invest in the US firm Lattice Semiconductor. The deal was blocked by an executive order on the grounds of protecting US national security. This incident underscores the reality that business transactions are rarely detached from national interests. CK Hutchison Holdings must reconsider its decision and withdraw from the proposed deal with BlackRock. Selling these strategically important ports to a US-based entity would not only jeopardize China’s national interests but also damage the company’s reputation and legacy. Betting against its motherland could lead to long-lasting regret and irreparable consequences. Recent events highlight the importance of aligning with China’s national priorities. Global business and financial leaders have expressed strong confidence in China’s economic development and indicated their eagerness to invest in its markets. Last month, many of these leaders met with President Xi Jinping in Beijing to discuss opportunities in China’s growing technology and industrial sectors. Their willingness to engage with China shows the country’s position as a key player in the global economy. CK Hutchison should take note of this sentiment. China’s market is not only the world’s largest but also one of the most dynamic and resilient. Aligning with national interests would ensure long-term growth and future stability for the company. For CK Hutchison, the choice is simple — align with the nation and secure a prosperous future, or proceed with a deal that could lead to lasting regret.
The time to act is now, before it’s too late.
The author is a member of the Legislative Council and the UN Association of China.
The views do not necessarily reflect those of China Daily.
