- COSCO Shipping may join CK Hutchison’s $22.8 billion global port sale to ease Chinese regulatory pressure.
- The original deal drew criticism from Beijing for excluding Chinese interests in strategic ports.
- U.S. resistance could intensify if COSCO gains influence, especially near the Panama Canal.
China’s state-owned shipping giant COSCO Shipping is reportedly in talks to join a high-profile $22.8 billion deal involving the sale of 43 ports owned by CK Hutchison, reports Reuters.
The ports, spread across 23 countries, are being sold to a consortium led by U.S.-based BlackRock and shipping giant MSC. While the proposed deal was initially structured without Chinese involvement, it has drawn significant backlash from Beijing, prompting CK Hutchison to consider restructuring the transaction.
Deal Overview and Strategic Importance
Chinese officials and state-run media criticized the deal for excluding Chinese interests, particularly as it involved key port terminals located near strategic regions such as the Panama Canal. The move was seen as undermining China’s global maritime influence, especially at a time when tensions with the United States remain high. To ease the pressure and secure regulatory approvals from Chinese authorities, CK Hutchison has initiated discussions to include COSCO as a significant investor in the transaction.
The inclusion of COSCO is seen as a strategic balancing act. While it could help address national interest concerns from Beijing and smooth the path for regulatory clearance, it also risks reigniting resistance from the United States. U.S. lawmakers and former officials have praised the original deal for reducing Chinese control over critical infrastructure. COSCO’s entry could prompt the U.S. to push for removal of certain sensitive ports from the agreement or delay the approval process altogether.
As negotiations continue, the consortium is exploring a revised structure that allows COSCO a minority stake, thereby acknowledging Chinese concerns without fully compromising the strategic goals of the Western-led bidders. With the exclusivity period for the deal having lapsed, CK Hutchison has indicated it is willing to take additional time to finalize a structure that satisfies all stakeholders. However, given the number of jurisdictions involved and the geopolitical sensitivities, full regulatory approvals are expected to take at least two years.
The evolving deal highlights the complex interplay of business interests, global trade infrastructure, and strategic national security concerns. COSCO’s potential involvement might offer a diplomatic solution to Chinese opposition, but it equally underscores the fragility of major cross-border transactions in an era of rising geopolitical competition.
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Source: Reuters
