CK Hutchison Holdings, a Hong Kong conglomerate, is exploring the inclusion of a Chinese investor in its $23 billion deal to sell port assets, including those at the Panama Canal, after exclusive talks with a U.S.-led consortium expired on July 27. The move, aimed at navigating Beijing’s anti-monopoly scrutiny, could ease tensions with China but invite further U.S. oversight due to the canal’s strategic importance.

The initial agreement involved selling Hutchison Port Holdings and Hutchison Port Group Holdings to a consortium including BlackRock’s Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of Mediterranean Shipping Company led by Italian scion Diego Aponte. The deal, covering 43 ports in 23 countries, including Balboa and Cristobal at the Panama Canal, initially pleased U.S. President Donald Trump, who has accused China of meddling in the canal’s operations. However, Beijing criticized the deal, with state-backed media calling it a betrayal, prompting Hutchison to reconsider the consortium’s structure.

“The Group remains in discussions to invite a major strategic investor from the PRC,” Hutchison stated, signaling a shift to secure approval from all relevant authorities, including Panama’s government. The decision reflects the delicate balance Hong Kong firms face amid U.S.-China tensions and Beijing’s push for loyalty from the city’s business elite, underscored by its “patriots-only” electoral reforms. As CK Hutchison, owned by tycoon Li Ka-shing, navigates these geopolitical complexities, the deal’s outcome could reshape control over a critical global trade route.

Also Read: Can China survive without exports? Trade talks begin soon

Also Read: Pak Army Chief’s China Visit Sparks Major Talks!