China's Cosco Eyes Veto Rights in Deal for Li Ka-shing's Ports
State-owned China Cosco Shipping Corp. is asking to have veto rights or equivalent powers in the entity taking over the 43 ports, including two strategically important ones along the Panama Canal, the people said, asking not to be identified discussing private matters. Cosco has argued such rights are necessary to block any decisions that are potentially harmful to China's interests, the people added.
Li's CK Hutchison Holdings Ltd. and the original buyer group, which includes BlackRock Inc.'s Global Infrastructure Partners unit and Italian billionaire Gianluigi Aponte's Terminal Investment Ltd., have agreed that Cosco should have full informational access to the operation, the people said. But talks are still ongoing as to the powers that Cosco will have in the consortium and no final decisions have been made, they said.
Read: Chinese Firms in Talks to Join Group for Li Ka-Shing's Ports
A 145-day period for exclusive talks between CK Hutchison and the consortium is likely to lapse on July 27, and details of Cosco's role in the consortium could be settled by the end of September, some of them said.
Cosco didn't respond to calls and a faxed request for comments. CK Hutchison and the Aponte family's MSC Mediterranean Shipping Co., which controls Terminal Investment, didn't respond to separate requests for comment. BlackRock declined to comment.
Cosco's demands mark the latest twist for a deal that's become a proxy for US-China rivalry, after President Donald Trump painted the transaction as the return of Panama Canal to US influence. Chinese regulators have, for their part, vowed to investigate the transaction, and Li and his family have come under intense scrutiny and criticism.
The Hong Kong tycoon's younger son Richard Li's talks to expand his insurance business into mainland China have stalled after the ports deal upset Beijing, Bloomberg reported earlier this month. That followed another Bloomberg report in March that China told its state-owned firms to hold off on any new collaboration with businesses linked to the Li family.
The original structure of the buyer consortium was designed to give the Aponte family-controlled Terminal Investment ownership of all the ports except the two in Panama, whose control will go to the BlackRock unit.
With assistance from Silla Brush.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
7 minutes ago
- Hindustan Times
Forget Cartier: Made-in-China Luxury Captivates Chinese Consumers
Well-off Chinese used to chase Western luxury bags and jewelry as symbols of status. Now, in a challenge to the likes of Cartier and Yves Saint Laurent, they are turning to homegrown brands. Little-known in the West, names such as Laopu, Mao Geping and Songmont are winning over Chinese customers with a pitch that combines locally inspired designs and cultural pride. Beijing auditor Zhou Linanfang, 35, noticed long lines outside a store selling Laopu gold jewelry from her hospital room last year when she was about to give birth. Her social-media feeds added to the buzz around the brand. Zhou, like many in her generation, considered gold jewelry unfashionable but changed her mind after seeing the filigree flower rings, gourd-shaped pendants and phoenix hairpieces in Laopu designs. Soon after the arrival of her baby boy, her husband lined up at a Laopu store in Beijing for an hour to buy her a butterfly-shaped pendant for $1,600. 'It's just stylish,' Zhou said. 'Now that we have luxury gold pieces, as someone who loves fashion, how could I not get one?' Also taking notice are Western luxury-brand CEOs such as Johann Rupert, chairman of Cartier parent Richemont. He was asked in May whether Laopu was a threat. The brand is 'tied to nationalism and tied to patriotism, and they have a lot of wins in their favor,' Rupert said. However, he added, 'Cartier is universal.' For Hermès, the resale value of its bags remains an advantage over Chinese rivals. Sales of luxury products in mainland China, mostly Western brands, fell around 20% last year to less than $50 billion, according to consultants at Bain. They said China accounted for about one in eight dollars spent on luxury globally. For the year ended March 2025, Richemont's sales in China fell 23%. Laopu listed its shares in Hong Kong last year and its stock surged, giving the company a market capitalization of more than $15 billion. By contrast, shares of Gucci owner Kering have declined more than 20% compared with a year earlier as the China growth hopes that formerly drove luxury shares have faded. In June, NBA player Victor Wembanyama was seen wearing Laopu's signature gourd-shaped pendant at a sports-card show in New York after visiting China. Uncertain economy Zhou said she liked the idea of buying gold jewelry because it might retain its value better in an era of growing economic uncertainty. She said she no longer bought a luxury handbag or jewelry every six months like she used to. 'I might lose my job tomorrow, so I definitely need to cut back,' she said. Laopu's chairman, Xu Gaoming, told shareholders in April that the company has carved out a niche with little direct competition. Chinese gold jewelry makers aim for the mass market, while European fine jewelers don't specialize in gold. Laopu's black-and-white stores offer a minimalist ambience, while pampering customers as they wait with Evian water and Godiva chocolate. A Laopu store in Beijing. As those perks suggest, European brands still have a cachet that is hard to match. People in the luxury business said the Chinese brands might even serve as a feeder to get younger consumers interested in luxury. Vanessa Piao, a luxury-bag reseller in China, said more buyers are treating their purchases as an investment, and they often prefer prestigious names such as Hermès, Chanel and Louis Vuitton. 'They are happy to pay $20,000 for a Birkin 25 because they can resell it in a few years without losing much,' Piao said, referring to the Hermès bag. 'They won't pay that money for a luxury bag or any fashion item from a domestic brand, no matter how exquisite and rare it is, because that, to some, is the equivalent of throwing $20,000 down the drain.' Big names, big prices Sophia Zhang, 32, was a loyal customer of Lancôme and Estée Lauder until she became a fan of Mao Geping, the namesake brand of a Chinese makeup artist. Its cream and foundation typically cost half or less the price of the international brands. A 100-gram jar of its signature moisturizer costs $139, compared with $280 for a smaller jar of a top-of-the-line Lancôme moisturizer. 'In the past I figured I'd splurge on skin care, believing those big names were the best, and I'd dismiss local products just because they were cheaper,' said Zhang, who, like Zhou, said she still buys some European brands. Now that she has found a less-expensive alternative that suits her, she said, 'it'll be tough to go back.' Backstage at a Mao Geping show during Beijing Fashion Week. China is also developing some accessible luxury brands priced comparably to Coach and Michael Kors. One is Songmont, known for its simple and modern designs in products such as a $529 shoulder bag. Twelve-year-old Songmont was co-founded by Fu Song and Wang Jie, designers who graduated from China's top art schools. Some of their first products, with Chinese brocade linings depicting auspicious Chinese motifs like dragons, phoenixes and butterflies, were fashioned by Fu's grandmother and other craftspeople in western Shanxi province. Like many other niche brands around the world, Songmont emphasizes sustainability and its sourcing of threads and oils for its leather bags from Germany and Italy. Its stores incorporate pine trees and rocks, and it brought on tennis star Li Na to promote the brand to channel a bold vibe. The next question is whether the Chinese brands can go global. Shein and Temu have succeeded in e-commerce with rock-bottom prices on mostly Chinese-made goods, and some Americans have taken to Labubu, the viral troll-like toy from China's Pop Mart. Laopu, the jewelry retailer, opened its first overseas store in Singapore in June and will venture to Japan next, but a person close to the company questioned whether Western consumers were ready to embrace marketing based on traditional Chinese culture and aesthetics. Bain consultant Claudia D'Arpizio said Labubu's success suggested Gen-Z consumers were open to buying Chinese. However, she said, 'for more of the core high-end luxury customers in the U.S. and in Europe, made-in-Europe is still very important.' Write to Shen Lu at Forget Cartier: Made-in-China Luxury Captivates Chinese Consumers Forget Cartier: Made-in-China Luxury Captivates Chinese Consumers
The Hindu
7 minutes ago
- The Hindu
Net FDI has fallen steeply, domestic investors gripped by 'fear': Congress slams government
, The Congress on Monday (July 28, 2025) claimed that the net foreign direct investment has fallen steeply while domestic investors are gripped by 'fear and uncertainty', as it asked the government to support incomes, end its 'crony capitalist and tax terrorism' policies, fix the GST, and protect Indian industries from Chinese dumping. The opposition party's assertion came after Finance Minister Nirmala Sitharaman's reported remarks that India's private sector investment has not kept pace with the growing public expenditure. Also Read: Why has net FDI inflow plummeted? In a post on X, Congress general secretary in-charge communications Jairam Ramesh said, 'The Finance Minister has finally acknowledged what the INC had been saying for a long time: that private investment continues to be sluggish and is not growing at the pace desired and also expected.' 'This is even after the significant corporate tax cuts of September 2019, undertaken just before the Howdy Modi event that was held in Houston in support of President Trump's re-election,' Mr. Ramesh said. He further said that net FDI has fallen steeply while domestic investors are gripped by 'fear and uncertainty' – thanks in large measure to 'tax terrorism and policies that only favour a couple of business groups'. 'The growth of mass markets for consumption goods is being hampered by a decade-long stagnant wages crisis and a flawed GST, which awaits fundamental reform,' Mr. Ramesh argued. 'Finally, the 'dumping' of cheap imports from China – which is taking place despite the loss of Indian territory in Ladakh – has also led to the closure of domestic manufacturing units, foreclosing the possibility of new investments,' he said. 'Acknowledgment is the first step. Now comes the hard part – the government needs to take action to support incomes, put an end to its crony capitalist and tax terrorism policies, fix the GST, and protect our industries from Chinese dumping,' Mr. Ramesh said. The Congress has been attacking the government over its handling of the economy, claiming the issues of rising prices, decreasing private investment, and stagnating wages were hitting the common people hard.
Time of India
7 minutes ago
- Time of India
Chinese consumer complaints show widespread padding of car sales figures
A tactic used by Chinese automakers and dealers to inflate car sales has grown increasingly common in recent years in response to a bruising price war in the world's largest auto market, a Reuters analysis of consumer complaints has found. Earlier this month, Reuters reported EV brands Neta and Zeekr had arranged for cars to be insured before buyers purchased them, a scheme that effectively inflates sales numbers and gives the appearance the companies were hitting periodic targets. But the controversial tactic was not limited to the two companies and was employed elsewhere in the industry, according to a Reuters review of 97 separate consumer complaints published on three widely used Chinese websites. In more than a dozen cases, buyers said they were informed by dealerships that the practice was specifically designed to meet sales targets. The allegations cover some of China's largest domestic and foreign brands by sales volume, including homegrown champion BYD and Toyota, Volkswagen and Buick. The three foreign brands operate their China businesses in partnerships with state-owned giants GAC and SAIC Motor Group . While the earliest complaints date back to 2021, the majority were published this year and last as a price war squeezed an industry crucial to China's export-driven economy. Reuters reviewed complaints posted on a third-party site used for consumer dispute resolutions, and two other similar sites. The platforms require owners to verify their identity and submit proof of their allegations. In most of the cases reviewed, the automakers responded publicly, saying they sought to resolve problems. Reuters was not able to independently verify the complaints or their resolutions. It is not clear what portion of China's car sales were inflated by the insurance scheme. SAIC, which is a China joint venture partner for Volkswagen and Buick-owner General Motors, said it is committed to providing users with high-quality and standardised sales services but did not elaborate. The practice effectively disguises how much inventory automakers actually held, said Yale Zhang, managing director at consultancy Automotive Foresight. "That could lead to a misjudgment of monthly demand within the industry and result in increased production scheduling," Zhang said. Consumer anger Between 2021 and 2025, 48 separate buyers said on that they purchased new cars only to later discover they were already insured by the dealer. Many of the buyers said they felt deceived by the dealerships, especially when they realised the insurance on their cars was registered in other names. Likewise, there were 26 separate complaints published between 2021 and 2025 on the 315 auto consumer complaint platform, run by the state-owned China Internet Information Center. Another 23 were posted between 2022 and 2025 on Black Cat, a widely used consumer complaint platform run by tech firm Sina. In 14 complaints on the three platforms, buyers of BYD-, Neta-, Toyota-, Buick- and Chevrolet-branded cars said they were told by dealers the practice was aimed at booking sales early to meet targets. One complaint, filed in December against a SAIC GM dealer on alleged the automaker required 60 cars to be insured without buyers to meet sales targets. Another complaint on filed in April alleged a BYD store in Shaanxi told a buyer it had 12 cars insured in a batch to inflate sales last July. Buyers of Li Auto, Changan, FAW-Volkswagen and Geely also reported cars being insured pre-purchase. A Volkswagen Group China spokesperson said it refused to boost sales figures through insurance and that complaints would be investigated. Dealer complaints Separately, Reuters identified 29 official media reports from 2020 to 2025 that detailed complaints against dealers of major brands, including BYD and Changan and foreign brands Volkswagen, GM, Toyota, Nissan and Honda, run by their joint ventures with state-owned Chinese automakers. The media outlets, across 15 provinces and cities, are controlled and owned by the regional governments. In nine cases, dealers representing FAW Hongqi, SAIC Roewe, SAIC VW, Dongfeng Nissan, GAC Toyota, GAC Honda and SAIC GM told official media that insuring unsold vehicles was for booking purchases early to meet sales targets. A Honda spokesperson said that GAC Honda prohibits dealers from taking out compulsory insurance before selling new cars and that any dealers found doing so would be dealt with severely. FAW Hongqi said it does not use insurance plans to pre-confirm sales and any such activity was not official company action. GM China said it does not require wholesale vehicles to be insured pre-purchase and that it counts deliveries, not insurance, in its sales reports. BYD, GAC Toyota, Geely, Changan, Nissan and Li Auto did not respond to requests for comment. Reuters also identified five articles published by Chinese courts between March 2023 and March 2025 about consumers taking dealers to court for concealing pre-purchase car insurance. In three of those, the court ruled for the buyers who demanded compensation. Verdicts for the other two were not publicised. 'ZERO MILEAGE' Vehicles booked as sold before reaching buyers are called "zero-mileage used cars" in China. The practice emerged out of the cut-throat competition as the market deals with a years-long price war caused by chronic overcapacity. More than 100 car brands are competing intensely to survive consolidation, deepening pressure to bolster sales and take market share. Analysts and investors that track the industry use two sets of data. Wholesale figures reported by automakers to the industry association show sales from automakers to dealers, while retail data compiled from mandatory traffic insurance registrations show the number of sales to users. Accusations of selling cars with existing insurance policies date back to 2016 when a Cadillac buyer told a regional radio programme he found the car was insured before his purchase. The practice appears to have picked up after the price war started in early 2023, when several brands led by Li Auto started posting weekly sales rankings on social media based on insurance registrations. The China Association of Automobile Manufacturers has criticised such postings as unreliable and this month blamed them for intensifying "vicious" competition.
