One day after CK Hutchison, controlled by tycoon Li Ka-shing, announced on March 4 plans to sell its ports assets to a US-led consortium, a Chinese Foreign Ministry spokesman gave a terse response, saying it was a “commercial deal.”

In less than a fortnight, it has turned into a political fireball over the troubled waters of China-US relations – with Li’s business empire and some quarters of the community found themselves in the increasingly murky waters.

On Thursday, the State Council’s Hong Kong and Macau Affairs Office posted on its website a fiery article published on the opinion page of pro-Beijing newspaper Ta Kung Pao. The article denounced the sale as “grovelling” and “betrayal.”

Without telling who it was referring to, the commentary said in its headline “Don’t be naive”. It argued that it was not an “ordinary commercial deal”, but “an act of hegemon.” It urged the company to think twice and decide “which position and side it wants to be on.”

The article was also shared by Beijing’s Liaison Office in Hong Kong on Friday.

Described as “trade war”

Under the US$23 billion deal, CK Hutchison, a flagship unit of the Li family, would sell 80 percent of Hutchison Port Group to a BlackRock-led consortium. The assets comprise 43 container ports in 23 countries, including a 90 per cent stake in two Panama ports that have been the target of US President Donald Trump’s ire.

As of Friday night, CK Hutchison and both the Hong Kong and central governments have kept silent on the latest twist of development.

But there were fresh signs showing hardliners in the pro-Beijing circle are keen to politicise the deal to stir up nationalistic sentiments in times of what they described as “trade war” between China and the US.

The sale of CK Hutchison’s ports assets to the BlackRock-led consortium has been liked by a pro-Beijing columnist Chris Wat, who is highly popular in the mainland netizens’ circle, as a “knife” given to a thief in a blog on Friday.

Also on Friday, a columnist in the Bastille Post, a Chinese online media platform, claimed a total of 43 ports around the world including those in Panama would fall into the hands of a Trump-friendly consortium if the deal was done. It would become a weapon for Trump to hit China’s shipping industry and even the Belt and Road grand strategy.

Attributing China’s defeat in the Opium War to disunity in the country, the article said Chinese people should stand united behind the nation in the ongoing trade war with the US.

Hong Kong’s image of a free market economy

The emergence of a drumbeat of nationalism in what the Foreign Ministry spokesman has described as a “commercial deal” between a Hong Kong-listed company and a US consortium is rare in the city known for its free economy.

Late Nobel laureate Milton Friendman once said, “If I want to see capitalism in action, go to Hong Kong.” If he comes to see Hong Kong now, he may find disturbing signs in the economic scene filled with political rhetoric and nationalistic language.

That could not be more mind-boggling coming in the heels of the conclusion of the “two sessions,” or the annual National People’s Congress and Chinese People’s Political Consultative Conference.

During the session, top officials in charge of Hong Kong affairs have highlighted the importance of “one country, two systems” and Hong Kong’s links with the international community.

Speaking at a post-plenum learning session attended by senior government officials on Friday, Chief Executive John Lee urged colleagues to draw attention to three points. They include “deepening international exchanges and cooperation” and further strengthening the advantages of “one country, two systems” policy.

The ports’ deal is not subject to the approval of Chinese regulators or authorities in Hong Kong. But it is unclear whether the scathing attack with a seemingly blessing from both the HKMAO and the Liaison Office would derail the deal.

News of the deal shot up the share prices of the company by 30 percent. But the anti-deal article had frightened investors. Share price went down 6 percent on Friday.

Analysts say share prices may drop further if they decide not to pursue the deal. That looks unlikely at this stage.

If it does happen, the company may have to pay a price. But Hong Kong’s invaluable image of a free market economy and unique strengths under the “one country, two systems” may suffer unfathomable damage.

▌[At Large] About the Author

Chris Yeung is a veteran journalist, a founder and chief writer of the now-disbanded CitizenNews; he now runs a daily news commentary channel on Youtube. He had formerly worked with the South China Morning Post and the Hong Kong Economic Journal.