China's Directive Halts New Contracts with Li Ka-shing's Firms Amid Port Sale Controversy

China has paused new deals between state-owned companies and Hong Kong billionaire Li Ka-shing's firms amid his plan to sell two Panamanian ports to a BlackRock-led group. The move, reported by Bloomberg, involves a $19 billion transaction criticized by pro-Beijing media, highlighting growing geopolitical tensions.

China has ordered state-owned enterprises to halt forming new contracts with companies associated with Hong Kong billionaire Li Ka-shing, following his intent to sell two of Panama's ports to a consortium led by BlackRock. Bloomberg revealed this on Thursday, indicating a significant geopolitical tension.

Li's CK Hutchison, a prominent conglomerate in sectors from telecom to retail, is entangled in a contentious $19 billion deal with the U.S. firm. This transaction, touching the strategically critical Panama Canal, has come under fire for perceived threats to China's national interests.

The Chinese directive does not affect existing collaborations but stems from top-level concerns. Chinese regulators are scrutinizing Li's global investments to assess their reach. Pro-Beijing media criticism of the deal suggests Beijing's discomfort with CK Hutchison's divestment under alleged U.S. pressure.

(With inputs from agencies.)