Beijing confirms regulators are scrutinizing CK Hutchison port deal
China's market regulator (SAMR) confirmed it is scrutinizing CK Hutchison's port deal.
- SAMR revealed the news in an interview with state media Ta Kung Pao, published Friday.
In case you've been living under a rock: Hong Kong conglomerate CK Hutchison started a firestorm when it announced it would sell 43 ports in 23 countries – including two along the Panama Canal – to a consortium of investors led by US firm BlackRock.
- State media has decried the deal, and Xi Jinping is reportedly fuming.
Humble brag: In last week's deep dive we argued a SAMR regulatory review was one of the most likely tools Beijing would use to block the deal.
Unsurprisingly, the deal is facing delays:
- On Friday, SCMP scooped that paperwork on the deal won't be signed by April 2, as previously planned.
- Other publications subsequently confirmed the scoop, with multiple insiders indicating negotiations are ongoing.
Get smart: China perceives the US as strong-arming CK Hutchison to sell its strategic assets to foreign buyers.
- That's a red line for Beijing, as we saw with TikTok.
Get smarter: Parties to the deal are now stuck between a Chinese rock and a US hard place.
- Both Trump and Xi are personally invested in the deal, making it difficult for companies involved to pull out without being accused of caving to one side or the other.