Hong Kong Leader Says Concerns over Panama Ports Deal Warrant 'Attention'

FILE - A cargo ship sails next to the Panama Canal's Balboa port in Panama City, Feb. 1, 2025. (AP Photo/Matias Delacroix, File)
FILE - A cargo ship sails next to the Panama Canal's Balboa port in Panama City, Feb. 1, 2025. (AP Photo/Matias Delacroix, File)
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Hong Kong Leader Says Concerns over Panama Ports Deal Warrant 'Attention'

FILE - A cargo ship sails next to the Panama Canal's Balboa port in Panama City, Feb. 1, 2025. (AP Photo/Matias Delacroix, File)
FILE - A cargo ship sails next to the Panama Canal's Balboa port in Panama City, Feb. 1, 2025. (AP Photo/Matias Delacroix, File)

Hong Kong leader John Lee on Tuesday said criticism of city conglomerate CK Hutchison's sale of its Panama Canal ports deserved "serious attention", after Beijing authorities repeatedly slammed the deal.

The business empire of Hong Kong's richest man, Li Ka-shing, sold most of its port operations -- including those in the canal -- to a US-led consortium this month following pressure from US President Donald Trump.

But Beijing has upped pressure on the firm since, with two Chinese government offices managing Hong Kong affairs republishing newspaper articles last week blasting the transaction and questioning whether CK Hutchison sided with the United States over China, AFP reported.

"There have been extensive discussions in society about the issue and this reflects society's concern over the matter," Lee, the chief executive of the largely autonomous Chinese city, told reporters.

"These concerns deserve serious attention."

Bloomberg News reported on Tuesday, citing unnamed sources, that senior Chinese leaders have ordered several government agencies -- including the State Administration for Market Regulation -- to scrutinize the deal.

This examination by Beijing does not necessarily result in follow-up action, the sources told Bloomberg, asking not to be identified to discuss private deliberations.

Shares of CK Hutchison in Hong Kong fell nearly four percent on Tuesday morning.

For months, Trump has complained that China controls shipping in the Panama Canal, which was built by the United States more than a century ago to link the Pacific and Atlantic oceans.

The US president repeatedly threatened to "take back" the canal, which was handed over to Panama in 1999.

'Bullying tactics'

Before the sale, CK Hutchison's subsidiary in Panama had managed two of the five ports at the canal -- one on the Cristobal, Atlantic, side and the other on the Balboa, Pacific, side -- via a government concession since 1997.

CK Hutchison, one of Hong Kong's largest conglomerates, said the deal was unrelated to recent political news.

Lee on Tuesday urged foreign governments to "provide a fair and just environment" for Hong Kong enterprises, without calling out the United States by name.

"We oppose the abusive use of coercion, of bullying tactics in international economic and trade relations," he said.

Lee said any transaction must comply with legal and regulatory requirements, adding that Hong Kong would "handle it in accordance with the law and regulations".

The Hong Kong and Macao Work Office -- an office in Beijing overseeing Hong Kong affairs -- republished a newspaper article last Thursday asking CK Hutchison "which side it stands on".

Two days later, it ran another piece critical of the deal, which was later republished by the Liaison Office, the top Beijing authority based in Hong Kong.

AFP has contacted the conglomerate for comment.

Outspoken Hong Kong ex-leader CY Leung added to the chorus of criticism, saying "some Hong Kong businesspeople mistakenly believe that 'businesspeople have no homeland'".

"American businesspeople can and will do only things aligned with US interests... the same applies to China," Leung wrote on Facebook on Monday.



Oil Slips as Putin Agrees 30-day Halt on Energy Facility Strikes

A view of an oil pump jack on the prairies near Claresholm, Alberta, Canada January 18, 2025. REUTERS/Todd Korol/File Photo
A view of an oil pump jack on the prairies near Claresholm, Alberta, Canada January 18, 2025. REUTERS/Todd Korol/File Photo
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Oil Slips as Putin Agrees 30-day Halt on Energy Facility Strikes

A view of an oil pump jack on the prairies near Claresholm, Alberta, Canada January 18, 2025. REUTERS/Todd Korol/File Photo
A view of an oil pump jack on the prairies near Claresholm, Alberta, Canada January 18, 2025. REUTERS/Todd Korol/File Photo

Oil prices edged lower on Wednesday after Russia agreed to US President Donald Trump's proposal that Moscow and Kyiv temporarily stop attacking each other's energy infrastructure, a move analysts say could eventually pave the way for Russian oil to enter global markets.

Brent crude futures slipped 11 cents, or 0.16%, to $69.97 a barrel at 1130 GMT. US West Texas Intermediate crude (WTI) was down 12 cents, or 0.18%, at $66.78.

Russian President Vladimir Putin agreed on Tuesday to stop attacking Ukrainian energy facilities but stopped short of endorsing a full 30-day ceasefire that Trump hoped for.

"Crude prices softened on signs of progress towards a ceasefire deal in Ukraine, coupled with wider market weakness as traders and investors worry about the fallout from tariff wars," said Panmure Liberum analyst Ashley Kelty, Reuters reported.

"Even if a deal is struck, it will likely take some time before Russian energy exports increase in a significant way, with the short-term impact being around diversion of flows in order to attract better pricing."

Russia is one of the world's top oil suppliers, but its output has waned since the beginning of the war, which resulted in sanctions on Russian energy.

The deal reduces supply disruption risks and increases the chances for peace that could lead to an easing of energy sanctions on Russia, allowing more supply into the market, said Charalampos Pissouros, senior investment analyst at brokerage XM.

Meanwhile, US tariffs on Canada, Mexico and China have raised recession fears, which also weighed on oil prices as that would have a dampening effect on demand for crude.

Oil markets remain focused on price downside despite rising Middle East tensions, Goldman Sachs analysts said in a note on Wednesday.

Traders are awaiting the outcome of the US Federal Reserve policy meeting which will conclude later in the day.

Interest rate cuts typically boost economic activity and energy demand. However, the Fed is expected to hold its benchmark interest rate steady in the 4.25%-4.50% range, amid investor worries over an economic slowdown due to Trump's tariffs.

Trump vowed to continue his country's assault on Yemen's Houthis and said he would hold Iran responsible for any attacks carried out by the group that has disrupted shipping in the Red Sea.

Israeli airstrikes in Gaza, meanwhile, killed at least 200 people, Palestinian health authorities said, which ended a week-long ceasefire and elevated risks of oil supply being threatened from the broader region.

In the US, crude oil stocks data painted a mixed picture, with crude stocks rising while fuel inventories fell.

Crude stocks were up 4.59 million barrels in the week ended March 14, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.71 million barrels and distillate stocks were down 2.15 million barrels, they said.

Official government data is due on Wednesday.