Eyebrows Raised as Hong Kong's Richard Li Enters Panama Ports Deal, Observers Claim

The younger son of billionaire Li Ka-shing was seen mingling with high-profile figures over the weekend in the country's capital. However, an observer notes that Beijing considers him distinct from the contentious deal.

The presence of the younger son of Hong Kong tycoon Li Ka-shing at an important conference in Beijing over the weekend created quite a buzz among industry insiders. This was particularly notable because the Chinese authorities had previously expressed dissatisfaction with the sale of Panama Canal terminals operated by their corporate group, according to analysts.

Among the 93 individuals featured in a collective photograph with Chinese Premier Li Qiang during the China Development Forum on Sunday in Beijing was Richard Li Tzar-kai. Neither his father nor his older brother, Victor Li Tzar-kuoi, were present for this occasion.

In the back row, the younger sibling wore their typical circular, black-rimmed eyeglasses.

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He participated as the representative of Pacific Century Group, a Hong Kong-based private investment company with holdings in sectors such as technology, media, financial services, infrastructure, and real estate.

Lau Siu-kai, an advisor to the quasi-governmental think tank known as the Chinese Association of Hong Kong and Macau Studies, stated on Tuesday that Beijing acknowledged the brothers had engaged in distinct commercial activities for many years.

Lau stated that Richard Li had no part in the sale of piers by Hutchison, and he is a magnate in his own capacity. Additionally, Beijing hasn’t released any formal statements condemning either Hutchison or Li Ka-shing.

Since announcing the unexpected agreement on March 4 to divest its international port holdings—encompassing facilities at both ends of the Panama Canal— CK Hutchison Holdings, under the control of the Li family, has not made further comments.

A group headed by BlackRock, the globe’s largest asset management firm, clinched the deal worth $23 billion.

This move will position the consortium as a leading force in the international port sector, with the sale yielding $19 billion in cash for CK Hutchison.

Lau said Richard Li was invited to the Beijing event before the controversy erupted.

According to an experienced observer, the central government did not decide to "suddenly" revoke the invitation.

However, Beijing continued to express significant concern regarding the Li family subsequent to the port agreement.

U.S. President Donald Trump has welcomed the sale, stating that Washington will be “taking back” the canal from what he perceives as Chinese influence. When Trump regained the presidency in January, CK Hutchison faced significant scrutiny regarding its activities in Panama.

The stock price of CK Hutchison surged by 4.2 percent to reach HK$45.05 on Monday following the release of images showing Richard Li at an event in Beijing. On Tuesday, the share price stayed steady.

Also captured in the group photo from the two-day forum were several notable Hong Kong individuals such as Financial Secretary Paul Chan Mo-po, Hong Kong Exchanges and Clearing Chairman Carlson Tong Ka-shing, Rosewood Hotel Group CEO Sonia Cheng Chi-man, and MTR Corporation Chairperson Rex Auyeung Pak-kuen.

The background of the photograph stated: "Unlocking Development Drive for Steady Expansion of the World Economy."

Jacky Ko Chung-kit, who serves as the vice-chairman of the Y. Elites Association—a group with more than 1,300 members that provides advice to the government—expressed surprise at Richard Li’s presence “as one of the representatives from the Chinese business sector.” This reaction stems from concerns surrounding the difficulties faced by his company due to issues related to the port sales transaction.

"This could have been a source of pride; however, CK Hutchison’s planned sale of international port holdings, which includes assets in Panama, has ignited debate recently," stated Ko.

Given that this is a Chinese company, shouldn’t the priority be protecting China’s interests? Therefore, should the Li family reconsider their decision to sell the ports?

Chinese firms ought to consider the standpoint of national interest...Foreign businesses remain steadfastly positive regarding the Chinese market and are proactively engaging with the wave of China’s progress; would the Li family choose to swim against this current?

Ko mentioned approximately 30 U.S. firms that participated in the conference, including major corporations like Apple, Pfizer, FedEx, Siemens, BMW, Mercedes-Benz, and Samsung among those present.

The debate around the CK Hutchison deal has been escalating, as prominent Hong Kong politicians have joined the discussion in recent days.

During the weekend, Starry Lee Wai-king, who serves as the city’s only representative in the national highest legislative organization, mentioned that businesses would face challenges when attempting to make straightforward "commercial choices" due to the present circumstances where politics and commerce are closely linked.

His predecessor, Tam Yiu-chung, stated that both the export business and the shipping sector are crucial for national security.

Last week, Chief Executive John Lee Ka-chiu criticized foreign governments for their "abusive application of coercion" in commercial interactions.

The politicians were echoing commentaries from state-owned Hong Kong media outlet Ta Kung Pao, which slammed the sale. Beijing's offices in Hong Kong reposted the pieces in recent weeks.

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Eyebrows Raised as Hong Kong's Richard Li Enters Panama Ports Deal, Observers Claim