Caught Between Superpowers: CK Hutchison Looks to China to Keep $23B Port Deal Afloat

What started as a massive win for one of Asia’s richest tycoons has turned into a geopolitical tug-of-war. Now, CK Hutchison is scrambling to reshape its $23 billion global ports deal — and it’s turning to China to help push it over the finish line.

The Hong Kong conglomerate, controlled by billionaire Li Ka-shing, said Monday it’s in talks to bring a “major strategic investor” from China into the consortium that’s trying to buy its international port empire — a move seen as an effort to ease Beijing’s growing concerns over the deal.

That investor? Most likely state-owned shipping giant China COSCO Shipping, according to multiple insiders.

Back in March, CK Hutchison made waves when it announced plans to sell 43 of its overseas ports — including two critical ones on each end of the Panama Canal — to a consortium led by US investment powerhouse BlackRock and Mediterranean shipping giant MSC, owned by Italy’s Aponte family.

The deal, worth nearly $23 billion, looked like a textbook power play. It would’ve seen BlackRock and MSC take over ports stretching from Europe to Southeast Asia to Latin America.

Trump cheered the deal, calling it a step toward “reclaiming” the Panama Canal — even though China never actually controlled it. But Beijing didn’t take the news well.

Chinese regulators immediately launched a review. State media called the deal a betrayal. And behind closed doors, Beijing reportedly warned Chinese firms to stay away from doing business with Li Ka-shing’s empire.

That pressure worked. Now, CK Hutchison says it’s shaking up the consortium — and COSCO may be the key to getting this mega-deal across the line.

The Panama Canal is no ordinary shipping lane. It handles about 3% of global maritime trade, and China has invested heavily in Latin American infrastructure. Beijing isn’t thrilled about the idea of US and European firms gaining control of strategic ports in such a critical area — especially at a time of rising tensions with Washington.

By bringing COSCO into the deal, CK Hutchison hopes to calm Chinese regulators and salvage the sale. According to sources, one option being considered is carving COSCO into the deal while excluding them from the Panama ports to avoid US political backlash.

JPMorgan analysts said adding a Chinese partner would likely improve the odds of regulatory approval — but it could also force changes to pricing and structure, or even remove certain ports from the final deal.

It’s a tricky balancing act. Hutchison insists it won’t go forward without approvals from all regulatory authorities — which now includes not just the US, EU, and Panama, but also China’s anti-monopoly watchdog.

And while the exclusivity window with the original consortium expired July 27, Hutchison isn’t shutting the door on new partners or revised structures.

In its filing to the Hong Kong Stock Exchange, the company said it’s still working toward a restructured deal that regulators can live with — and that might take a while.

This drama has also put the spotlight back on Li Ka-shing, the 96-year-old business icon known as “Superman” in Hong Kong for his legendary rise from factory boy to billionaire. His business acumen once helped him straddle the divide between China and the West. But under Xi Jinping’s rule, that balancing act has become increasingly difficult.

Li’s younger son Richard reportedly hit a wall trying to expand his insurance business in China after the port deal soured relations. Meanwhile, the family’s property arm, CK Asset, is more exposed in China than the rest of the group — and could feel more pressure if relations don’t thaw.

The next few months are crucial. COSCO is pushing for a meaningful stake — and possibly veto power — within the new consortium. That kind of clout could ease China’s fears but make US regulators nervous. The Panama government also needs to approve the deal, especially since the canal is a national symbol as much as a trade route.

With the original exclusivity window closed, CK Hutchison has more flexibility but also more complexity. Multiple sources say COSCO’s role could be finalized by the end of September — if the pieces fall into place.

With input from the Financial Times, Reuters, the Associated Press, and Bloomberg.