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Hong Kong (AP)-Hong Kong Tycoon Li Ka-SHing has chosen in Crosshairs after she chose CK Hutchison Holdings to sell Panama Channel port to Konsortium that includes the American investment company Blackrock Inc. It seems that Beijing's anger.
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Over the course of last week, Beijing Affairs offices in Hong Kong published huge comments from the state -backed local media on the initial deal by Hachceon, which is controlled by the Li family.
This raises questions about the deal and highlights the difficulties facing Hong Kong companies because it is a balance between the demands from Beijing for the national loyalty and its capitalist interests in the Asian financial center with free wheels. Here is what to know about this issue.
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The richest necks in Hong Kong
Superman is called “Superman” among the 50 richest people in the world, as Forbes calculates his net wealth of $ 38 billion. Lee, 96, retired from his position as head of CK Hutchison in 2018, succeeded by his older son Victor. But he is still one of the most influential characters in Hong Kong.
The Li's Rags-To Riches is parallel to the rise of the former British colony. His business empires every aspect of daily life in Hong Kong, from real estate and supermarkets to communications and facilities. Globally, its asset lump has assets including the British Pharmacy series SuperDrow and the European mobile network operator Three.
Hutchison company has operated ports on both sides of the Panama channel since 1997. This was one of the reasons that prompted US President Donald Trump to intervene in the critical lane.
My relationships with Beijing
The effect of me extends beyond work. He met with senior Chinese leaders and worked in the elite committee that chose Hong Kong leader.
Relations experts between Beijing and Hong Kong said that the leaders of the ruling Communist Party had once understood that support from the business sector was very important to maintain the capitalist system in Hong Kong. It was a strategic vital for the Chinese economy for the main righteousness, given the role of its global networks and resources in developing the country. Therefore, Lee had a noticeable political influence.
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But I have criticized some commercial decisions. When he sold some Chinese assets on the mainland in 2015, an article published by a research tank of Chinese official news agency Xinhua was accused of being immoral.
During the pro -democracy protests in 2019, I was bombed by some supporters of Bekeen due to his perceived contradiction to the turmoil. Some other business leaders in Hong Kong adopted a harder position.
Panama ports deal
CK Hutchison announced on March 4 that it will sell all its shares at Hutchison Port Holdings and in Hutchison Port Group Holdings to the Consortium, which also includes Blackrock, affiliated to global infrastructure partners and the relationship of Lininal Limited, headed by Italian charging, Diego Aponti, which is said to be it. It has a long relationship with Li.
If approved, the deal, which is estimated at about $ 23 billion, including $ 5 billion of debt, will grant control of the Federation on 43 outlets in 23 countries, including ports in Poa and Crystobal, located on both sides of the channel. The deal does not include ports in Hong Kong or China. CK Hutchison said the treatment was purely commercial.
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The happiest deal Trump but angered Beijing.
He described one of the comments of Beijing newspaper as a betrayal of all Chinese and said that the company should consider any aspect it should take. Others said that the great entrepreneurs are the patriots, which indicates that businessmen who “dance with” predatory American politicians will be governed by erosion.
Comments on the common posts about the deal on the Chinese social media platform Weibo tend to be more important than me.
CEO John Lee avoided direct criticisms of the deal or Trump, but he told reporters on Tuesday that his government opposes the bullying tactics of international economic and commercial relations, which repeats Beijing's position.
Ports carry geopolitical value
Some unconfirmed reports indicated that Chinese leaders are angry at not advice in advance about the deal.
George Chen, Managing Director of Hong Kong at the Asia Group, a Washington -based Consultant Policy Company, may have been disappointed because she had no time to derive a response in advance.
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The ports are the valuable strategic assets and the transactions that are always sensitive.
It is not clear whether pressure from Beijing will affect the deal, which must be approved by the Panama government. The Chinese Ministry of Foreign Affairs said a question about whether the authorities were investigating the deal, saying that journalists should ask other authorities.
CK Hutchison did not comment on the controversy. Its financial results were to be reported on Thursday, but he said he had not planned a press conference.
Chan said that canceling the deal would be risky.
“In the exact sense of the word, you just let Trump get the credit for it, then she says later,” Sorry, I cancel the deal. “He said,” You can imagine what Trump's reaction will be, “adding that this would also affect how the external world of Hong Kong companies showcase.
Long -term effects
The Trump administration offered to the approval of Chinese and Hong Kong to undermine the autonomy of the lands it promised when Britain handed its colony to Beijing in 1997 under a concept called “one country, two systems”. It promised that the city could preserve civil freedoms in the Western style and its economic independence for at least 50 years, but after the 2019 protests, Beijing has doubled its political control over the city.
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Chan said that he could try to weaken critics who see him sufficiently national, by using returns from selling the port assets for investments that are in line with Beijing's policies, especially in developing the work of the Hong Kong and mainland port.
The Asia Group said that the relations between private companies and Beijing are still unconfirmed. Although Chinese President Xi Jinping recently met with private sector business leaders in a support offer, some may ask whether they should follow the party line even if that might conflict with their commercial interests.
He said that if Beijing pushes pressure on me to cancel the deal, the Trump administration can respond with more sanctions and restrictions on Hong Kong companies, Chinese companies and some individuals.
Chen said the situation indicates that Washington's concerns about the independence of Hong Kong's work is valid.
“This is bad when it comes to defending” one country, two systems, “said Chen.
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