Ports, Power, and Patriotism: The Li Ka shing Firestorm

Ports, Power, and Patriotism: The Li Ka shing Firestorm

At 97, Li Ka-shing sold 43 ports worldwide, including two in Panama, to BlackRock for $22.8 billion, sparking outrage from Beijing and Hong Kong. They labeled him a traitor for handing strategic assets to the US amid tensions over the Panama Canal, which Trump’s administration seeks to control. The sale, announced March 4th, drew a delayed reaction on March 13th, with media attacks escalating daily. Li’s move, a smart exit from a risky industry, netted a premium deal—38 times earnings versus the usual 15-25. While he shifts focus to Europe, leaving little in Hong Kong and China beyond trusts, the backlash highlights clashing views on business and loyalty. Critics say he dodged a trade war bullet; supporters see a shrewd play. Either way, his clash with authority reverberates.

0:00 Intro
0:07 The Tycoon Under Fire
0:36 The Panama Plot Thickens
1:10 The Mystery of the Nine-Day Wait
1:46 Media Madness Unleashed
2:40 A Business Move That Paid Off
3:20 Dodging the Trade War Bullet
5:00 The Two-Faced Tango
8:29 The Fox’s Long Game
10:05 Loyalty’s One-Way Street

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[diggingintochina]

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[jerrycornelius]

Thank you. I had heard conflicting opinions on this subject. Your explanation is the most straightforward and least speculative.

[shaunbrowne]

Thank you Don for your razor sharp clarity and articulate discourse.

[kmquan]

I love when say the CCP "steal it, leave you with nothing and call you a crook capitalist, lock you up and let the crowd curse your whole family". How insightful. Thank you for another great video.

[Waverlyduli]

Another one of your excellent analyses, Don.

[jonathonfreeman]

best thumbnail ever. lol
also, you did an amazing job unraveling this tangled mess and concisely showing all sides

[adolfninh]

this is thhe best "Doing business in China" course I ever had

[wykcheng]

The delay in the China response is a demonstration of the free press representing the peoples opposition and opinions at work. Li made a lot of money from the people of HK and China. Ports are a business that is involved in politics as much as making money. I shed no tears for Li.

[JamesBrown-pe]

Don, another excellent update!A very insightful examination of the situation. Thanks.

[ismailnyeyusof]

Well done, Don, very sharp and insightful as always.

[louisgiokas]

Wasn't it Li who was selling properties in China a year or two back to limit his losses? Actually, he probably didn't lose money, but did not make as much as he would have made at the peak of the market.

[DrToboggan]

Great video, Mr. Don. For some reason, I was unsuscribed. Your videos are most well-researched and informative.

[kkiller]

At 97, Li Ka-shing is obviously not going to live much longer. Even if he gets "arrested" he maybe taking a hit for his family and key personnel who are almost certainly safely overseas along with nearly all the money.

[Worldwar]

If Li doesn’t sell the ports to US, he will lost this ports with nothing return

[rondewitt]

I love your view of Xi, not too bright and in way over his head…like usual.

[PuletuaWilson]

GREAT SHOW DIGGING IN CHINA, DON GREAT ANALYSIS WORKS 💪 👷‍♂️ ❤❤USA 🇺🇸 PERIOD, , STAYED SAFE ❤❤USA 🇺🇸 PERIOD

[chonghunyi]

I do not have a doubt that a person like you is true Chinese loving

[khsharpe]

I'm aware of contrarian views on this. Allegedly the talks for the deal have been going on for quite since time, pre-dating Trump's inauguration. It seems the deal has not yet been finalised. Blackrock still needs to do its due diligence before a final offer is made?

You are right to point out that Li's profits to income generated is not as high as it once was. Apparently the profitability has declined substantially. Part of the problem for Li is that the ports are quite old, many with aging infrastructure and limited capacity to service the new ultra large shipping. Ultra large is the future, and China is a world leader here. The Panama Canal and the 2 ports that service it are not able to accommodate these ships. American ownership /control of the ports and the canal does not present as big a threat to China as America & Digging Into China would have us believe. Peru's new megaport in Chancay and the new rail network that China is building in Sth America as part of the BRI will dramatically reduce the relevance of the Panama Canal and its 2 associated ports. Whilst true a lot of China's citizens are angry with Li (believing Trump's assertions that Li was coerced into this), China's government and the CPC are far less concerned than America, Western media and Digging Into China would have us believe. Xi is firmly focused on building the 21st Century's infrastructure, not clinging to infrastructure that was already reaching its Use By Date in the last decades of last century.

[brucekellett]

Hard to argue against your take on this. Can't wait to hear your thoughts on a Trump-Xi summit. The world is getting whiplashed by these guys. God certainly works in mysterious ways.

[ycplum]

My question is whether the money from the sale is in China or stayed outside of China. I wouldnot want to bring those funds into China. lol