Latest news with #China-U.S.
Yahoo
3 hours ago
- Business
- Yahoo
CK Hutchison ports deal deadline likely to be extended as US-China tensions weigh, sources say
By Clare Jim, Scott Murdoch and Davide Barbuscia HONG KONG (Reuters) -CK Hutchison's plan to sell most of its $22.8 billion ports business is unlikely to be finalised anytime soon, with political brinkmanship set to continue, and sources saying that a Sunday deadline for exclusive talks was likely to be extended. The Hong Kong conglomerate's plan to sell the business, which would include two ports along the strategically important Panama Canal, to a consortium led by BlackRock and Italian billionaire Gianluigi Aponte's family-run shipping company MSC, has become politicised amid an escalating China-U.S. trade war. Negotiations for the deal, which covers 43 ports in 23 countries, are on an exclusive basis between CK Hutchison, controlled by Hong Kong tycoon Li Ka-shing, and the consortium for 145 days until Sunday, as per the terms announced in March. The deal talks, however, are unlikely to collapse if the two parties do not ink a pact by Sunday, with three people close to the ports-to-telecoms conglomerate saying the parties could extend the deadline to continue exclusive negotiations. The first part of the deal - definitive documentation to sell two port operations near the Panama Canal - was also not signed by an April 2 deadline set in the sales announcement. The people declined to be named due to the sensitivity of the matter. BlackRock declined to comment. CK Hutchison and MSC Mediterranean Shipping Company, which CK Hutchison said in May was the main investor in the consortium, did not respond to requests for comment. U.S. President Donald Trump hailed the deal as "reclaiming" the Panama Canal, after his administration previously called for the removal of what it said was Chinese ownership of the ports near the canal. But in April, China's top market regulator said that it was paying close attention to CK Hutchison's planned sale and that parties to the deal should not try to avoid an antitrust review. Beijing's stance on the planned deal was made public after pro-China media launched a stinging criticism, saying China had significant national interests in the transaction and it would be a betrayal of the country. "I think at this moment it's not very optimistic that they can directly sell the ports to the consortium," said Jackson Chan, global fixed income senior manager at FSMOne Hong Kong, which has clients holding CK Hutchison bonds. "The market has already digested the news, even if it announces next week that it won't sell anymore, I don't think it'll be a shock because the market understands it wouldn't have a large impact on its operations." DEAL RISKS CK Hutchison shares, which jumped 33% the following two days after the deal was announced in early March, erased all of the gains by mid-April. But since then it regained lost ground along with the rise in the broader Hong Kong market index. The outlook for the deal has been clouded further in recent days, with a separate source telling Reuters that Chinese ports operator China Cosco Shipping Corp (COSCO) was also looking to join the consortium to buy the ports business. COSCO is requesting veto rights or equivalent power in the entity that will take over 43 ports from CK Hutchison, Bloomberg News reported this week, citing people familiar with the matter. COSCO did not respond to a request for comment. The existing consortium would likely allow COSCO into the deal, said Cathy Seifert, an analyst at CFRA Research. "The bigger risk to the deal being consummated, in my opinion, is likely the Trump administration, which is likely to block a deal that would include China," said the New Jersey-based analyst who tracks BlackRock. Ballingal Investment Advisors strategist David Blennerhassett, who publishes on the independent online research platform Smartkarma, said the addition of COSCO in the consortium was likely to enrage Trump. "Trump, who has a handful of issues already on his plate, would be incandescent," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
3 hours ago
- Business
- Time of India
CK Hutchison ports deal deadline likely to be extended as US-China tensions weigh, sources say
CK Hutchison 's plan to sell most of its $22.8 billion ports business is unlikely to be finalised anytime soon, with political brinkmanship set to continue, and sources saying that a Sunday deadline for exclusive talks was likely to be extended. The Hong Kong conglomerate's plan to sell the business, which would include two ports along the strategically important Panama Canal , to a consortium led by BlackRock and Italian billionaire Gianluigi Aponte's family-run shipping company MSC, has become politicised amid an escalating China-U.S. trade war. Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Technology Artificial Intelligence Management CXO Data Science Design Thinking Leadership MCA Cybersecurity Healthcare others Data Analytics Others healthcare Project Management Product Management PGDM MBA Digital Marketing Public Policy Finance Data Science Degree Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details Negotiations for the deal, which covers 43 ports in 23 countries, are on an exclusive basis between CK Hutchison, controlled by Hong Kong tycoon Li Ka-shing, and the consortium for 145 days until Sunday, as per the terms announced in March. The deal talks, however, are unlikely to collapse if the two parties do not ink a pact by Sunday, with three people close to the ports-to-telecoms conglomerate saying the parties could extend the deadline to continue exclusive negotiations. The first part of the deal - definitive documentation to sell two port operations near the Panama Canal - was also not signed by an April 2 deadline set in the sales announcement. Live Events The people declined to be named due to the sensitivity of the matter. BlackRock declined to comment. CK Hutchison and MSC Mediterranean Shipping Company, which CK Hutchison said in May was the main investor in the consortium, did not respond to requests for comment. U.S. President Donald Trump hailed the deal as "reclaiming" the Panama Canal, after his administration previously called for the removal of what it said was Chinese ownership of the ports near the canal. But in April, China's top market regulator said that it was paying close attention to CK Hutchison's planned sale and that parties to the deal should not try to avoid an antitrust review. Beijing's stance on the planned deal was made public after pro-China media launched a stinging criticism, saying China had significant national interests in the transaction and it would be a betrayal of the country. "I think at this moment it's not very optimistic that they can directly sell the ports to the consortium," said Jackson Chan, global fixed income senior manager at FSMOne Hong Kong, which has clients holding CK Hutchison bonds. "The market has already digested the news, even if it announces next week that it won't sell anymore, I don't think it'll be a shock because the market understands it wouldn't have a large impact on its operations." DEAL RISKS CK Hutchison shares, which jumped 33% the following two days after the deal was announced in early March, erased all of the gains by mid-April. But since then it regained lost ground along with the rise in the broader Hong Kong market index. The outlook for the deal has been clouded further in recent days, with a separate source telling Reuters that Chinese ports operator China Cosco Shipping Corp (COSCO) was also looking to join the consortium to buy the ports business. COSCO is requesting veto rights or equivalent power in the entity that will take over 43 ports from CK Hutchison, Bloomberg News reported this week, citing people familiar with the matter. COSCO did not respond to a request for comment. The existing consortium would likely allow COSCO into the deal, said Cathy Seifert, an analyst at CFRA Research. "The bigger risk to the deal being consummated, in my opinion, is likely the Trump administration, which is likely to block a deal that would include China," said the New Jersey-based analyst who tracks BlackRock. Ballingal Investment Advisors strategist David Blennerhassett, who publishes on the independent online research platform Smartkarma, said the addition of COSCO in the consortium was likely to enrage Trump. "Trump, who has a handful of issues already on his plate, would be incandescent," he said.
Time of India
21 hours ago
- Politics
- Time of India
Bangladesh Air Force Jet Crashes Into School
News • 2 Weeks ago A British F-35B fighter jet, valued at over $100 million, has been stuck at Kerala's Thiruvananthapuram airport for weeks, triggering global intrigue and conspiracy theories. Was it just a technical failure, or something bigger? After a weather diversion from the HMS Prince of Wales, the warplane developed a fault, keeping it grounded under constant British surveillance. Now, aviation experts and defense analysts are questioning NATO's silence. Is this about sensitive technology, secret surveillance, or a warning in the Indo-Pacific power game? From cockpit lockdowns to speculation about QUAD strategy and China-U.S. rivalry, this video unpacks every angle of one of the most curious military stories of 2025.
CNBC
3 days ago
- Business
- CNBC
Clout wars: Jensen Huang eclipses Elon Musk and Tim Cook in Washington
The China-U.S. trade war in the first Donald Trump administration saw Apple CEO Tim Cook go on a charm offensive with the president while maintaining strong relations with Beijing. Apple avoided U.S. tariffs and continued to grow in China, while Cook earned the reputation as a skilled policy navigator and prominent American business envoy to Beijing. But, in Trump 2.0, not only has Apple lost its crown to Nvidia as America's most valuable company, several tech pundits say the AI darling's charismatic leader, Jensen Huang, has left Cook far behind in political influence. "Huang has become a global figure and taken on a new role politically due to his success in the AI revolution," said Wedbush's Dan Ives, adding that the importance of Nvidia's AI chips has "vaulted him ahead of Cook." "He has found himself in a very strong position to navigate the political landscape ... [as] there is only one chip in the world fueling the AI revolution, and that's Nvidia's," Ives said. The optics of Huang's political ascendancy have never been stronger, as Nvidia last week announced during its CEO's latest visit to Beijing that it expected to soon resume sales of its H20 AI chips to China. The exports of the H20 chip to China had been restricted earlier this year — a move that Huang openly lobbied against. "It was a historic win for Nvidia and Jensen ... and I think it shows the increasing political influence that Huang's having within the Trump administration," Ives said. Huang had met with Trump in DC right before his China visit. The H20 reversal has been linked to trade negotiations between the U.S. and China. However, several experts told CNBC that Huang's lobbying played a large role in it. The Nvidia CEO has met with Trump many times this year, including joining him on a trip to the Middle East in May, which resulted in a massive AI deal that will see the delivery of hundreds of thousands of Nvidia's advanced AI chips to the United Arab Emirates. The Emirates deal had been seen as a way for America to push its global tech leadership, solidifying its technology stack in a new market over potential rivals like China's Huawei. After the trip, Huang increasingly began making a case against U.S. chip restrictions, arguing that they would erode America's tech leadership to the benefit of domestic Chinese players. According to a report from the New York Times, this had also been a narrative Huang had been pushing to Trump and his officials behind the scenes. Paul Triolo, senior vice president for China, and technology policy lead at DGA-Albright Stonebridge Group, told CNBC that Huang's arguments aligned with the thinking of influential White House AI and Crypto Czar David Sacks, further swaying the administration to lift restrictions on H20 chip exports. "Sacks and Huang both argue that limiting exports of U.S. technology such as select and non-cutting-edge GPUs to China risks pushing Chinese companies to use domestic alternatives ... At the end of the day, this argument likely carried the day on the H20 issue," he said. It's unclear when or if Nvidia will restart production lines of the H20, but if Nvidia is simply able to sell existing stocks of H20s, it will still be a "significant revenue boost and beneficial to Nvidia in terms of retaining clients' goodwill in China," Triolo added. Nvidia said it took a $4.5 billion writedown on its unsold H20 inventory in May. Huang said last week that every civil AI model should run on the U.S. technology stack, "encouraging nations worldwide to choose America," as Nvidia announced resuming H20 sales soon. When Trump won his second presidential election in November, many had expected a different tech CEO to hold the most influence on the administration and to act as a bridge between the U.S. and China. But Tesla's Elon Musk had a rather public break-up with Trump. In November, experts told CNBC that Musk's close ties to Trump and his business interests in China could help soften the president's aggressive trade stance toward Beijing, while cautioning against putting too much stock into the Tesla CEO. Meanwhile, under Trump's second presidency, Apple's Cook has seen some strong pushback from the administration. In May, Trump expressed a "little problem with Tim Cook" over Apple manufacturing products in India, despite the iPhone maker's commitment of a $500 billion investment in the U.S., announced in February. In response to the latest trade tensions between China and the U.S., Apple has accelerated efforts to de-risk supply chains from China by moving more iPhone production to India. Earlier this month, Trump adviser Peter Navarro also criticized Cook, saying he was not moving production out of China fast enough. Apple and Cook were seen as the most influential company and CEO, respectively, in the first Trump administration, but now its Huang and Nvidia, said Ray Wang, CEO of Silicon Valley-based Constellation Research Inc. "Almost everything rides on Nvidia's chips." According Triolo, while Huang has so far been able to "fairly deftly straddle both the U.S. government and China market" and "President Trump appears to be a big fan," it remains unclear exactly where the administration will draw the line on chip restrictions. "The goalposts here have been changed several times, causing significant and costly forced redesigns and booking capacity," he said. Despite Huang's growing influence in the tech world and in the Trump administration, there is no guarantee it will remain that way, other experts said. "For the moment, NVIDIA has gone from being the chief target of chip controls to chief influencer. The question is, how long will that moment last?" said Reva Goujon, director at Rhodium Group. The U.S. is also currently carrying out an investigation on the semiconductor industry that could result in sector-wide tariffs, and once again put the Trump administration's aims at odds with Nvidia's business. While Nvidia has been moving more manufacturing to the U.S., most of it remains in Taiwan. Cook may offer a lesson on how tricky it can be to operate a major technology business that views both China and the U.S. as key markets.
The Diplomat
6 days ago
- Business
- The Diplomat
How Iran Sees the China-US Trade War
As the expiration date for the truce in the trade war between the United States and China approaches, policymakers in Tehran see both immediate risks and potential long-term opportunities for the Islamic Republic of Iran. This is demonstrated in analysis produced by the Strategic Council on Foreign Relations (SCFR), an entity tasked with advising Supreme Leader Ali Khamenei on diplomatic affairs. Although not a decision-making body, the SCFR can indicate the direction of Iranian policymaking, due to its proximity to Khamenei's office and the involvement of key loyalists to the Supreme Leader, including former presidential contender Saeed Jalili. In its assessments of the China-U.S. trade war, the SCFR reveals how the Islamic Republic sees the rift between Washington and Beijing, while having little ability to influence its outcome. Amid international sanctions and diplomatic isolation, Iran has expanded its engagement with China. In recent years, China emerged as a critical economic partner for Iran – receiving up to 90 percent of Iranian oil exports, according to some reports. While the United States has sought to curtail these trade links, evasive shipping practices, avoidance of dollar transactions, and the use of 'teapot' refineries have enabled Iran and China to bypass sanctions. This has offered the Islamic Republic a crucial economic lifeline. Their partnership was formalized under a broader 25-year cooperation agreement between Tehran and Beijing signed in 2021. Outside of the energy sector, Iran's participation in the Belt and Road Initiative has facilitated Chinese infrastructure and utilities investment. In the wake of conflict between Iran and Israel, speculation has also emerged that Iran could bolster its security ties to China, especially amid military setbacks and apparent frustrations with Russia. The U.S. has sought to counter Iran's movement toward China, especially under the Trump administration, as a means of enhancing leverage over the Islamic Republic. During the past several months, Washington has moved to sanction entities involved in transporting and refining Iranian oil for the Chinese market. In the short term, upholding the status quo between the U.S. and China would be in Iran's interest, either by Beijing and Washington maintaining the interim tariff reduction deal or reaching a more permanent settlement. According to SCFR analysis, a reinvigorated China-U.S. trade war could harm Iran's economic lifeline, by reducing China's demand for production inputs like oil. Given its dependence on the Chinese market, this would have significant ramifications for Iran's already weak economy. It would also intensify inflation and weaken Iranian foreign currency reserves, both of which have been recurrent issues for the Islamic Republic's monetary system. Compounding these factors, diminished exports to China would strengthen sanctions enforcement by the West, which the Islamic Republic has failed to significantly alleviate via diplomatic means. As Iran seeks to regain its footing ahead of renewed competition with Israel, these pressures could undermine efforts to curb domestic dissent and replenish its military forces, leading to wider strategic challenges. Iran also sees opportunity in the China-U.S. trade war, as a potential disruption to the existing international order. In particular, the potential long-term weakening of the U.S. dollar could support Iran's strategic interests. As noted by one SCFR publication, reducing the dollar's dominance as the world reserve currency would diminish the efficacy of sanctions and relative U.S. economic power. This would dovetail with efforts by the Islamic Republic to support other global 'de-dollarization' initiatives, including the formation of a Shanghai Cooperation Organization bank and the expansion of the BRICS New Development Bank. Nevertheless, the SCFR may be overly optimistic on the prospects of de-dollarization, as a clear alternative has yet to emerge. Additionally, the SCFR claims that China could seek to develop new export markets in the Middle East, including Iran, necessitating a stronger economic and diplomatic push in the region. This would be to Iran's advantage, as it could entail further Chinese investment and non-oil trade, both of which the Islamic Republic has consistently pursued. That said, Chinese direct investment in Iran has been limited thus far. It is also to China's advantage that Iran is economically weak and isolated, as it enables the import of Iranian oil at a significant discount. Despite limited influence over the situation, the SCFR asserts that the China-U.S. trade war must be 'optimally utilized' to Iran's advantage. In particular, it identifies 'global polarization' and economic uncertainty as factors that could create opportunities for deepening trade relations with other developing states. Specifically, Brazil and India are highlighted as potential import partners, with the potential to reduce Iran's dependence upon any single patron. However, it is unlikely that either could match China's energy demand. Furthermore, much of Iran's success in diversifying commercial relations has come through states such as Belarus and Serbia, which are unlikely to import Iranian oil in significant amounts, despite offering certain opportunities. Overall, the SCFR's assessment reflects a lack of options for the Islamic Republic to proactively shape the situation to its advantage. This further indicates that the status quo may be Tehran's preferred outcome, for the time being. In sum, the SCFR's perspective on the China-U.S. trade war reveals a reactive posture. This is marked by an effort to preserve the Islamic Republic's current advantages while seeking new openings amid global economic shifts, primarily designed to erode and challenge U.S. influence. Still, Iran's ability to capitalize on these developments remains constrained by structural weaknesses, international isolation, and its growing dependence on its energy exports to China. As such, Tehran's strategic calculus ultimately hinges on maintaining regime resilience, while seeking space to balance and maneuver within broader great power competition.
