THE Battle
CK Hutchison announced the package on Mar 4. Less than 10 days after, Beijing-controlled paper, Ta Kung Pao, which is based in Hong Kong, published two strongly worded essays, urging the Li home to” stop being naïve and baffled”. They criticised CK Hutchison of being immoral and” selling out all Foreign people”.
This marks the first time Beijing has officially singled out Hong Kong’s most important company for strong criticism in the 27 years since the state’s returning to Taiwanese sovereignty, causing jitters and concerns about the politicisation of business in the local and broader business community.
Beijing’s noticeable loss of composure stems from not being informed of the offer in advance, amid US media reports that BlackRock chairman and CEO Larry Fink called US President Donald Trump to safe his blessing. Mr Trump hailed the offer as part of his administration’s efforts to regain the Panama Canal.
Despite finding themselves in a social surprise, the Li family has remarkably kept its amazing. In reality, the Mar 4 news, which stated that the price was purely commercial in nature and related to politics concerning the Panama ports, remains CK Hutchison’s just public speech to date.
Incensed by the silent treatment, Ta Kung Pao and another pro-Beijing Hong Kong paper Wen Wei Po have published at least 20 media stories and commentaries urging the Li home to listen to “public concerns” and block the deal in the name of national interests and security.
The wrangling reached a climax on Mar 26 when Bloomberg cited sources reporting that CK Hutchison was believed to be moving forward with the deal as scheduled, despite Beijing’s anger over the transaction.
In response, the Hong Kong and Macao Affairs Office again signalled its displeasure by reposting two articles published by Ta Kung Pao on Mar 26 and 27, criticising CK Hutchison for capitulating to US pressure and sacrificing national interests.
The following day, CK Hutchison finally relented amid reports that the State Administration for Market Regulation in Beijing would investigate the deal” to ensure fair competition” and” safeguard the public interest”.
Until then, Beijing had hoped that intense media pressure would suffice to persuade the Li family to pause the deal, mindful of the potential impact on business confidence in Hong Kong and China if it intervened directly.