**China’s Cosco Shipping Seeks Key Role in Li Ka-Shing’s Port Deal**
State-owned China Cosco Shipping Corp. is poised to join a global consortium acquiring overseas ports from Hong Kong billionaire Li Ka-shing. In a bid to secure Beijing’s approval for this contentious transaction, Cosco is requesting significant powers within the group, including veto rights over decisions that could impact China’s interests.
The consortium, which includes CK Hutchison Holdings Ltd., BlackRock Inc.’s Global Infrastructure Partners, and Italian billionaire Gianluigi Aponte’s Terminal Investment Ltd., is negotiating the extent of Cosco’s influence. Sources familiar with the discussions, who requested anonymity, indicated that while Cosco will have full access to operational information, the final agreement on its powers is still under deliberation.
The exclusive negotiation period between CK Hutchison and the consortium is set to expire on July 27, with expectations that the specifics of Cosco’s role could be finalized by the end of September.
This deal has become a focal point in the ongoing US-China rivalry, particularly after former President Donald Trump characterized it as a shift in control over the Panama Canal back to US influence. In response, Chinese regulators have pledged to scrutinize the transaction, leading to increased scrutiny of Li and his family. Reports suggest that Richard Li, Li Ka-shing’s younger son, has faced setbacks in expanding his insurance business into mainland China due to the fallout from the ports deal.
Originally, the buyer consortium was structured to allow Terminal Investment to own all ports except for the two located in Panama, which would be managed by BlackRock’s unit.
As discussions continue, the implications of this deal extend beyond business interests, reflecting broader geopolitical tensions.
**FAQ**
**What is the significance of Cosco Shipping’s involvement in the port acquisition?**
Cosco Shipping’s involvement is significant as it seeks to ensure that China’s interests are protected in a deal that has drawn international attention and scrutiny, particularly amid rising US-China tensions.
