Julie Zhu, Saeed Azhar and Scott Murdoch report that analysts suggest Beijing's disapproval of CK Hutchison's sale of its ports business could lead to increased political scrutiny of other major Chinese divestments involving American buyers. The criticism of the deal, including the sale of assets close to the Panama Canal to a consortium led by BlackRock, may heighten the examination of a potential sale of TikTok's U.S. assets, owned by Chinese company ByteDance.

U.S. President Donald Trump, who had previously criticized Chinese influence over the Panama Canal, praised the deal as the "reclaiming" of the canal shortly after its announcement on March 4. Following this, China's Hong Kong and Macau Affairs Office reposted critical commentaries on CK Hutchison, accusing the sale of betraying China's national interests.

Sources reveal that Chinese regulators, acting on central leadership's instructions, are investigating the deal, expressing Beijing's dissatisfaction with CK Hutchison's divestment under perceived U.S. pressure. The State Council Information Office, responsible for official Chinese government communications, did not provide comments on the matter.

The politicization of the CK Hutchison deal and the potential TikTok sale are expected to impact transactions involving Chinese and American companies amid escalating tensions between the two superpowers. Patricia M. Kim, an expert on U.S.-China relations and a fellow at the Brookings Institution, suggests that Beijing aims to show strength against U.S. pressure while avoiding appearing weak domestically.

Kim points out that Beijing's tougher stance towards the U.S., including the scrutiny of the CK Hutchison deal, is part of its strategy in response to trade actions by the Trump administration. Beijing's decision on complicating the port transaction or the TikTok deal may depend on its assessment of the viability of a trade agreement with the Trump administration.