China is threatening to obstruct the $22.8 billion sale of 43 ports in 23 countries by Hong Kong-based CK Hutchison Holdings if Cosco Shipping Corporation Ltd is excluded, according to sources cited by the Wall Street Journal.
The consortium, led by Mediterranean Shipping Company (MSC) and U.S. investment manager BlackRock, reached a preliminary agreement in March to purchase an 80 percent equity stake in Hutchison’s port terminal business.
Unnamed sources said Chinese authorities warned that unless Cosco is “an equal partner,” Beijing “will take steps to block Hutchison's proposed sale”.
Talks without Cosco must conclude by July 27, after which all parties remain open to its inclusion.
Separately, U.S. President Donald Trump described the deal as a strategic effort to “reclaim” control near the Panama Canal, while Representative John Moolenaar warned that Chinese participation would pose a “national security risk”.
The initial agreement dates back to March, when CK Hutchison announced plans to divest 80 percent of its global port business—valued at approximately $22.8 billion—to a consortium comprising MSC and BlackRock. Since then, MSC, via its Terminal Investment Limited unit, emerged as the lead consortium member, and Panama Canal terminals were expected to be transferred to BlackRock. However, in April, Beijing’s market regulator initiated an antitrust review, and top Hong Kong and Mainland Chinese offices publicly warned against the sale, calling it a threat to national interest. Amid these tensions, officials from Chinese state-owned enterprises allegedly received instructions to pause dealings with Hutchison-related entities until Cosco’s role is secured.
CK Hutchison Holdings is a publicly listed Hong Kong conglomerate, controlled by the Li Ka‑shing family. Its subsidiary, Hutchison Port Holdings, operates 43 ports across 23 countries and announced in March the sale of an 80 percent stake in this global ports business for about $22.8 billion.
Mediterranean Shipping Company (MSC) is a privately held, Geneva‑based container shipping company helmed by the Aponte family, operating over 800 vessels with a capacity of approximately 5.6 million TEUs.
BlackRock is a New York‑headquartered investment manager and the world’s largest asset manager. In partnership with MSC, BlackRock is poised to manage the Panama Canal terminals under the proposed deal.
China COSCO Shipping Corporation Ltd is a major state-owned Chinese shipping enterprise, with a global terminal portfolio managed by its subsidiary COSCO Shipping Ports.