China Warns CK Hutchison on $23B Ports Deal Compliance

China's top market regulator, the State Administration for Market Regulation (SAMR), has issued a strong warning to CK Hutchison and its partners regarding the proposed $23 billion sale of 43 overseas ports to a consortium led by BlackRock and Mediterranean Shipping Company. Beijing insists that the deal cannot proceed without a thorough antitrust review and has threatened legal action if the parties attempt to bypass this requirement. The transaction has drawn heightened scrutiny because it includes two ports at either end of the strategically significant Panama Canal, raising geopolitical concerns amid ongoing US-China tensions. While some reports suggest the consortium may consider separating the Panama Canal ports from the rest of the deal to address regulatory and political objections, Chinese officials remain opposed, citing national security concerns and criticizing the sale as damaging to China's interests. The regulator's stance underscores China's broader commitment to enforcing antitrust laws and maintaining control over assets considered vital to its strategic interests. The deal's complexity is further compounded by regulatory hurdles across multiple jurisdictions and the involvement of both US and Chinese interests.