Trump, China ramp up Panama Canal pressure with Li Ka-Shing deal in limbo

China dialed up scrutiny of Hong Kong billionaire Li Ka-Shing's planned Panama ports sale to a BlackRock-backed group, while US President Donald Trump sought preferential treatment for US ships in the waterway, adding to uncertainty over whether the blockbuster deal will proceed.

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HONG KONG -

China's market regulator said on April 27 that its review of Li-owned CK Hutchison Holdings' sale of dozens of ports would cover all parties involved, and that the deal should not be implemented without the body's approval.

Although the transaction concerns only CK Hutchison's assets outside of China and Hong Kong, the regulator's statement is seen as an assertion of Beijing's control over businesses based in the Greater China region.

The US and China have been embroiled in an escalating war of words over the Panama Canal, which handles roughly 3 per cent of global seaborne trade, with the US and China being its two main users. It is piling further political pressure on Mr Li as he tries to sell the two Panama ports, putting him in the crosshairs of tensions between the US and China.