Diplomacy
CK Hutchison shares fall after China criticizes Panama port sale
Shares in Hong Kong-based conglomerate CK Hutchison fell 5% on Friday after China criticized the sale of its Panama Canal ports and suggested it should “think twice” about a $22.8 billion deal with US asset manager BlackRock.
A strongly worded commentary, which first appeared in Hong Kong’s Beijing-backed newspaper Ta Kung Pao and was reposted late Thursday by China’s top office in charge of the territory’s affairs, accused the US of using “despicable means” to pressure the deal.
The article stated, “[Critics] say this is a spineless, fawning, profit-seeking move that sells out integrity for personal gains and disregards national interests. [It is an act of betraying and selling out all the Chinese people].”
It emphasized that China’s maritime transport and trade would be hindered by the US and that CK Hutchison should “think twice” about “what position and side it should be on.”
Dan Baker, a senior equity analyst at Morningstar, said concerns over whether the deal would be completed after securing approval from the Trump administration were reflected in Friday’s share price decline, but that the move might be an “overreaction.”
“To the extent that the company still has assets in China, if the Chinese government is angry with them for making this sale, there is probably some potential investor concern about what might happen to their businesses that are still there,” Baker said.
Mainland China and Hong Kong accounted for about 14% of CK Hutchison’s 2023 revenues, while revenues from the UK and Europe accounted for about 50% of that.
CK Hutchison did not immediately respond to a request for comment. Its shares had risen more than 20% in Hong Kong when the deal was first announced last week.
At the time, Chinese Foreign Ministry Spokesperson Lin Jian declined to comment on the sale but denied Trump’s claims that China controlled the canal.
Under the agreement in principle, 43 ports owned by billionaire Li Ka-shing’s CK Hutchison company, located at both ends of the Panama Canal, will be sold to a consortium that includes BlackRock.
These ports include those in the UK and Germany, as well as Southeast Asia, the Middle East, Mexico, and Australia.
According to the Financial Times, BlackRock CEO Larry Fink briefed senior officials from the Trump administration, including the President and Secretary of State Marco Rubio, to secure their support for the takeover.
The deal was planned a few days after Donald Trump took office. The President said in his inaugural speech: “The Panama Canal is operated by China… and we are taking it back.”
Li, who retired as chairman of CK Hutchison in 2018 and still serves as a senior advisor, was actively involved in the negotiations.
Diplomacy
UK demands FIFA investigation after Argentina players display Falklands banner at World Cup
The British government has called on world football’s governing body, FIFA, to launch an investigation after Argentina national team players posed with a banner asserting sovereignty over the disputed Falkland Islands following their World Cup semifinal victory over England.
Peter Kyle, the UK Science, Innovation and Technology Secretary (Business Secretary), speaking to Times Radio and the BBC on Thursday, described the banner displayed by several Argentine players during their victory celebrations as “completely inappropriate” and stated that he expected the global governing body to conduct a “proper investigation” into the incident.
Emphasizing that politics must be kept out of football, Kyle contrasted the conduct of the Argentine team with what he described as the dignified posture maintained by the English players.
“The Malvinas belong to Argentina”
Argentina defeated England 2-1 on Wednesday in a World Cup semifinal match held in Atlanta, United States. Following the match, Argentine players took a banner handed to them by fans in the stands which read in Spanish, “Las Malvinas son Argentinas” (The Falkland Islands belong to Argentina).
Argentina refers to the British overseas territory as the “Islas Malvinas.”
Among the players holding the banner were several who play for English Premier League clubs, including Manchester United defender Lisandro Martinez, Liverpool midfielder Alexis Mac Allister, and Tottenham Hotspur center-back Cristian Romero.
Commenting on the incident, Lisandro Martinez noted that the banner evoked deep emotions. “I can imagine a Malvinas veteran crying upon seeing this. I do not know if there will be any disciplinary sanctions, but what we did was display that banner and declare that the islands belong to us,” Martinez said.
Argentine midfielder Leandro Paredes reflected on the historical trauma associated with the dispute, saying, “Unfortunately, this event is a sad part of our history for everyone who lived through that era. This is something that hurts us. We knew we were playing for them as well.”
FIFA’s disciplinary code strictly prohibits the exhibition of political, ideological, religious, or offensive messages, including banners, flags, posters, and apparel, that are deemed inappropriate for sporting events.
Violations of these regulations can result in fines for the Argentine Football Association (AFA) ranging between 5,000 and 20,000 Swiss francs. FIFA officials did not immediately respond to inquiries regarding the matter on Thursday.
The FIFA disciplinary committee has previously imposed sanctions in similar cases involving political statements.
At the 2012 London Olympic Games, South Korean footballer Park Jong-woo was banned for two international matches after displaying a sign reading “Dokdo is our territory,” which he had taken from the stands after a bronze-medal match victory against Japan. FIFA declared at the time that the player’s behavior “could not be tolerated.”
Similarly, the Argentine national team displayed the same Falklands banner during a friendly match in Buenos Aires in June 2014. Following that tournament, FIFA fined the Argentine Football Association 30,000 Swiss francs.
Most recently, during the 2022 World Cup, the Football Association of Serbia was fined 20,000 Swiss francs after a flag depicting a map of Kosovo as part of Serbia, bearing the slogan “No Surrender,” was hung in their dressing room prior to a match against Brazil.
Historical and political background
The Falkland Islands, located in the South Atlantic with a population of approximately 3,500 people, lie about 13,000 kilometers from the United Kingdom and approximately 500 kilometers from the Argentine coast.
London and Buenos Aires fought a war over the sovereignty of the archipelago in 1982.
The conflict began with an invasion ordered by the Argentine military dictatorship, which escalated into a 10-week war after the UK launched a military response. The war concluded with a British military victory.
The hostilities resulted in the deaths of 649 Argentine military personnel, 255 British service members, and three island residents. The conclusion of the conflict coincided with the opening days of the 1982 World Cup in Spain, during which British television broadcasters refused to air Argentina’s opening match.
Argentina maintains that the islands were illegally seized from it by Britain in 1833. The UK, which traces its claim of ownership back to 1765, states that it dispatched a warship to the islands in 1833 to expel Argentine forces attempting to establish sovereignty.
Political tensions surrounding the fixture were apparent before Wednesday’s semifinal. Ahead of the kickoff, Argentine Vice President Victoria Villarruel labeled Britain an “occupier.”
At the same time, FIFA’s commitment to political neutrality has faced scrutiny during this tournament. Critics have accused FIFA President Gianni Infantino and the disciplinary committee of succumbing to pressure from US President Donald Trump to suspend a red-card ban issued to American forward Folarin Balogun during the round of 16.
Balogun, whose suspension was deferred for one year, subsequently played against Belgium, who won the match 4-1 to advance to the quarterfinals.
Infantino is expected to attend Sunday’s final between Argentina and Spain at MetLife Stadium in New Jersey alongside Trump and Argentine President Javier Milei, who are close political allies.
Diplomacy
Iran rejects Turkish foreign minister’s comparison of regional policy to Israel
Iranian Foreign Ministry Spokesperson Esmaeil Baghaei strongly criticized Turkish Foreign Minister Hakan Fidan’s recent statements comparing Iran’s regional actions to those of Israel, calling the comparison “astonishing and incorrect” during his weekly press conference.
In a comprehensive briefing on Monday, Baghaei addressed a wide range of foreign policy developments and regional security matters, including relations with Türkiye, the current state of diplomatic understandings with the United States, and Iran’s nuclear program.
“Hakan Fidan’s comparison is astonishing and incorrect”
When asked about Fidan’s assertions regarding Iran and his comparison of Iranian actions to those of the Israeli government, Baghaei sharply rejected the assessment.
“It is astonishing that a figure of Mr. Fidan’s standing would make such an unwarranted comparison,” Baghaei said. “He knows very well that the Israeli regime is expansionist by nature and seeks to harm the entire region, including Türkiye. How they arrived at such a bizarre comparison remains a major question for us.”
Baghaei asserted that Iran maintains no proxy forces in the region and argued that Israel represents the only true proxy entity in the Middle East. “We ask our Turkish friends to align their analyses with existing realities and to avoid repeating analyses that serve the exploitative interests of the Israeli regime,” the spokesperson added.
The remarks follow recent statements by Fidan, in which he addressed the ongoing conflict involving Hezbollah and Hamas, describing them as Iranian proxies in the region.
“We need to return to a situation where the sovereignty and territorial integrity of every nation is fully recognized,” Fidan had stated. “Iran has long claimed to pursue a preventive security policy by maintaining proxies in these countries, just as the Israelis occupy the rest of the region as part of their own security.”
“The Islamabad Agreement has entered a crisis phase”
Responding to a question regarding the status of the Islamabad Agreement, Baghaei stated: “There is no doubt that this agreement has entered a crisis phase.”
While emphasizing that Iran approaches all negotiations with seriousness and precision, and fulfills its commitments in good faith once an agreement is reached, Baghaei accused the opposing party of failing to honor its pledges.
“They were so eager to breach the agreement that they did not even allow the one-month period specified in Article 5 regarding the Strait of Hormuz to run its course. They began backsliding from the very first days,” Baghaei said. “Looking at the 14 articles of the memorandum of understanding, the Americans dismantled different components of the agreement within this short timeframe. We have maintained from the beginning that it is a matter of ‘commitment for commitment.’ As long as the other party fulfills its obligations, we will remain committed to ours.”
“We reject the IAEA’s request to access damaged facilities”
Asked about the request by International Atomic Energy Agency (IAEA) Director General Rafael Grossi for inspectors to return to Iran and visit damaged nuclear facilities, Baghaei delivered a flat rejection, stating that the request would not be granted.
Addressing separate reports regarding satellite imagery of nuclear facility reconstruction, Baghaei noted that he had not yet seen the satellite images in question and therefore declined to comment.
“We will not allow the Strait of Hormuz to be threatened by the US”
Commenting on maritime security in the Strait of Hormuz and allegations that the United States is providing military escorts to 20 vessels, Baghaei reiterated Iran’s opposition to the presence of extra-regional forces.
Baghaei stated that regional security can only be achieved without foreign intervention, through consultative mechanisms among regional countries. He added that the US military presence is a source of insecurity in the region.
“We will not allow the Strait of Hormuz to become an area of threat against Iran’s interests,” the spokesperson said. “We made genuine efforts to ensure navigation security, but the US was the party that undermined the process. The claims regarding vessel escorts demonstrate that the US is continuing its interventionist and aggressive policies in the region.”
Regarding the interpretation of Article 5 of the memorandum of understanding, Baghaei stated that the text is clear and leaves no room for interpretation.
He noted that provisions designating the management of the strait to Iran, in consultation with Oman, were included in the text to protect Iranian interests. He added that the US is attempting to establish parallel routes by provoking regional countries, which he warned causes environmental issues and jeopardizes maritime safety.
“The declaration by the three European countries is null and void”
Referring to a joint declaration issued by France, Germany, and the United Kingdom, Baghaei dismissed the statement as entirely invalid, accusing the European nations of attempting to distort facts.
He stated that the actions of the US and Israel are the source of instability and harm in both the region and the wider world, adding that such declarations do not contribute to any resolution.
Addressing claims made by the French Foreign Minister, Baghaei added that French officials should cease attempting to assume roles in matters that do not concern them.
“We have not conditioned cooperation with Afghanistan on recognition”
Baghaei provided details on a recent visit to Afghanistan by Alireza Jalalzadeh, the Deputy Foreign Minister for Consular Affairs, noting that discussions were conducted within the framework of consular affairs and people-to-people relations.
Highlighting that Iran shares a border of more than 900 kilometers with Afghanistan, hosts a large number of Afghan migrants, and maintains extensive commercial ties, Baghaei said: “We have not conditioned the official recognition of the Afghan administration on the cooperation necessary for the interests of both countries. The recognition process is a legal procedure, and a decision on this matter will be made when the time comes.”
“We do not make decisions on behalf of Lebanon”
Rejecting allegations that Iran is interfering in the internal affairs of Lebanon and Oman, Baghaei said: “We do not make decisions on behalf of anyone. The inclusion of Lebanon’s name in the memorandum of understanding demonstrates Iran’s sense of responsibility toward maintaining international security. In the first article of the text, we emphasized the need to end the war on all fronts, including Lebanon. This is not a matter of decision-making; the decision belongs to the Lebanese people.”
Addressing international pressure regarding the disarmament of Hezbollah, Baghaei stated that the Lebanese people are best positioned to understand the value of the resistance’s weapons in protecting their sovereignty, and that any decision on the matter rests solely with them.
“Trump’s claims are false”
Baghaei denied claims made by former US President Donald Trump regarding Iran’s conduct during nuclear negotiations.
“Lying has become a behavioral pattern and an addiction for the US,” Baghaei said. “The talks held in Muscat on Saturday focused exclusively on the Strait of Hormuz. We attempted to establish a mechanism to ensure the safe passage of vessels through Omani mediation, but this outcome was not reached due to pressure exerted on Oman.”
He added that alleged assassination plots against Trump were never a subject of negotiation.
“The death of Lindsey Graham will not grieve free people”
When asked to comment on the death of US Senator Lindsey Graham, Baghaei remarked:
“The Angel of Death is just. One cannot expect the peoples of the region to mourn a figure who built his life philosophy on aggression, war, and terror, and who boasted of being the greatest supporter of genocide. The death of this aggressive senator will not grieve the heart of any free person.”
Diplomacy
NATO leadership sees no evidence of Russian preparations for attack on Baltics by 2030
The military and political leadership of NATO sees no evidence that Russia is preparing for a potential attack on the Baltic states by 2030, according to a report by The Times, citing a senior alliance source.
“I see absolutely no sign that Russia is interested in engaging in any conflict with NATO,” the high-ranking source told the newspaper. The official added that they had no intention of speculating on the date of a potential conflict, as some other officials within the alliance have done.
The Times noted that rhetoric suggesting an open military conflict between NATO and Russia could begin in 2030 is primarily being used to mobilize the resources of the alliance’s member states. The report stated that this framing aims to encourage members to meet a defense spending target set at 5% of their gross domestic product (GDP) by 2035. Speaking to the newspaper on the sidelines of the NATO summit in Ankara, Martin O’Donnell, spokesperson for the Supreme Headquarters Allied Powers Europe (SHAPE), said that allies currently have a “window of opportunity” to build up the capabilities already agreed upon.
Kremlin Spokesperson Dmitry Peskov has previously stated that the militarization of Europe would require Russia to take additional measures to guarantee its national security.
As the implications of these developments continue to play out in the military arena, Lithuanian President Gitanas Nauseda announced on July 9 that NATO leadership has converted the mandate of the Baltic air policing mission from air patrol to a combat footing.
The day before this decision, leaders attending the NATO summit in Ankara pointed to the “long-term threat Russia poses to Euro-Atlantic security and stability” in a joint declaration.
NATO has repeatedly expressed concerns over a potential conflict with Russia. NATO Secretary General Mark Rutte has urged member states not to be “naive” about threats coming from Russia and to increase their defense spending. Similarly, the commander of the German Army, Christian Freuding, asserted on June 12 that his country must “be ready for a Russian attack” by 2029 or sooner, stating, “We must be ready for war.”
In contrast, Russian Deputy Foreign Minister Aleksandr Grushko claimed in a June 22 interview with the Izvestia newspaper that NATO and the European Union are preparing for a military conflict with Russia on the horizon of 2030. Grushko noted that from a military perspective, there is now little difference between NATO and the EU regarding aggressive ambitions toward Moscow, and that their main objective is to inflict a strategic defeat on Russia.
The Moscow administration has repeatedly emphasized that it has no intention of attacking Europe. Russian President Vladimir Putin has stated that there are no geopolitical, economic, or military reasons to fight the alliance. Nevertheless, Putin has also stated that “all NATO countries are virtually at war with Russia.”
Last year, representatives of NATO countries approved a declaration agreeing to raise military spending to 5% of GDP by 2035. Under this target, 3.5% of spending is projected to go directly to the military budget, while 1.5% is to be allocated indirectly to defense through cybersecurity and the modernization of highways.
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