Another Company Is Caught up in US and China's Fight - Business Insider

Key Players and Actions

China criticized CK Hutchison, a Hong Kong company, for selling a major stake in two Panama ports to a BlackRock-led consortium. This followed comments from US President Trump threatening to retake control of the Panama Canal. China's state-owned media outlet, Ta Kung Pao, condemned the deal, calling CK Hutchison 'spineless' and accusing the US of using 'power politics'. Walmart also faced pressure from China for allegedly asking suppliers to reduce prices to offset US tariffs.

Financial Impacts

CK Hutchison's shares fell significantly following the criticism. The market value of the company is approximately $23 billion. While some analysts expressed concerns, others viewed the sale as a positive move for CK Hutchison, allowing it to sell assets at a favorable price and mitigate geopolitical risks.

Geopolitical Context

The incident underscores the increasing entanglement of private companies in the escalating US-China geopolitical rivalry. China believes the US is leveraging the deal for political purposes, impacting Chinese shipping and trade in the region. The commentary serves as a warning to other companies to consider their position amidst this rivalry.

Contrasting Views

• China: Views the deal as a betrayal of national interests and a tool of US power politics.
• CK Hutchison: Maintains the deal was purely commercial.
• Some Analysts: Believe the sale is strategically sound for CK Hutchison, given the potential for future trade disruptions.