By Alex 
Li Ka-shing’s proposed sale of a significant portion of his port assets has become a focal point of US-China rivalry, highlighting the complex interplay between commercial interests and geopolitical strategies.
The Transaction Overview
In March 2025, Li Ka-shing’s Cheung Kong Group announced plans to sell 80% of its port assets, including 43 ports across 23 countries, to a consortium led by the US-based BlackRock for $228 billion. Among these ports are the strategically important Balboa and Cristobal ports at either end of the Panama Canal. The Panama Canal is a critical global shipping hub, handling 6% of global maritime trade annually, with Chinese vessels accounting for 21% of this traffic. This transaction has raised concerns about the potential impact on China’s shipping interests and global supply chains.
The Geopolitical Context
The proposed sale has been viewed through the lens of US-China strategic competition. The Trump administration, which has long sought to “reclaim” control over the Panama Canal, has expressed support for the acquisition. This aligns with the US strategy to counter China’s growing influence in global shipping and maritime trade. The transaction could potentially give the US control over a significant portion of global shipping lanes, thereby affecting China’s “Belt and Road” initiatives and its broader economic interests.
Chinese Response and Concerns
China has expressed serious concerns over the transaction, citing potential risks to its national interests. The Chinese Foreign Ministry has emphasized that the transaction must undergo strict regulatory scrutiny to ensure it does not harm China’s shipping security or violate anti-monopoly laws. The State Administration for Market Regulation has also intervened, highlighting the need to protect public interests and prevent any monopolistic practices. The official stance underscores China’s determination to safeguard its strategic assets and global trade interests.
Public and Media Reactions
The proposed sale has sparked intense public and media debate in China. Many commentators have criticized the transaction as a potential threat to national security and accused Li Ka-shing of prioritizing commercial interests over national considerations. The Hong Kong-based Ta Kung Pao newspaper has published several critical articles questioning the timing and motives behind the sale, suggesting that it could undermine China’s strategic position.
Potential Impacts and Future Scenarios
If the transaction proceeds, it could have several far-reaching implications:
1. Economic Impact: China could face higher shipping costs and potential disruptions to its supply chains, affecting key industries such as manufacturing and energy.
2. Strategic Impact: The US could gain a strategic advantage by controlling critical shipping routes, potentially weakening China’s influence in global maritime trade.
3. Geopolitical Impact: The transaction could further strain US-China relations, adding another layer of complexity to the ongoing trade and geopolitical disputes.
The future of the transaction remains uncertain. It could either proceed with modifications to address Chinese concerns, be canceled altogether, or lead to a search for alternative buyers. Regardless of the outcome, this episode underscores the increasing politicization of global business decisions and the challenges faced by multinational corporations in navigating complex geopolitical landscapes.
In summary, Li Ka-shing’s port sale is more than just a commercial transaction; it is a microcosm of the broader US-China rivalry, highlighting the intricate balance between economic interests and national security in an era of heightened geopolitical tensions.