Chinese dictator Xi Jinping has reportedly blocked a $22.8 billion deal that would have seen Hong Kong conglomerate CK Hutchison sell its ports at both ends of the Panama Canal to a consortium led by U.S. investment giant BlackRock. The decision, driven by Xi’s fury over being left out of the loop, has triggered a geopolitical showdown between China and the Trump administration.

CK Hutchison, owned by Hong Kong billionaire Li Ka-shing, had agreed to sell 43 port assets around the globe, with the Panama Canal holdings being the most strategically sensitive. President Donald Trump hailed the deal as a national security victory, declaring in March, “My administration will be reclaiming the Panama Canal, and we’ve already started doing it.”

Xi Jinping, however, was anything but pleased. According to reports from Al Jazeera and Watcher Guru, the Chinese leader was outraged that Li did not seek his approval or coordinate with Communist Party officials. The state-run Chinese outlet Ta Kung Pao called the sale a “betrayal of all Chinese people” and labeled Li’s actions “spineless groveling.”

The backlash was swift. China’s antitrust regulator, the State Administration for Market Regulation, announced an abrupt investigation into the deal under the guise of protecting market competition. CK Hutchison then stated the planned signing of the Panama ports agreement, scheduled for April 2, would not proceed.

While China’s justification centers on antitrust concerns, many observers see this as a naked power play. There is no clear legal reason for Beijing to interfere in the transaction of a Hong Kong-based company selling assets located in Panama. But the political message is unmistakable: Xi expects obedience — even from billionaires — and is prepared to weaponize regulatory bodies to enforce it.

The White House responded defiantly. A Trump administration official told the New York Post, “We are confident that Panama will require the sale of these assets within its sovereign territory.” The Post’s editorial board said the move validated Trump’s warnings about Chinese threats to American security in the canal zone.

China’s real fear may be losing leverage. Xi reportedly intended to use the Panama Canal ports as a bargaining chip with Trump. Now that the ports were poised to shift into American hands, Beijing’s ability to pressure Washington — or guarantee uninterrupted access for its own vessels — was evaporating.

This also has ramifications for Chinese domestic politics. Li Ka-shing is a revered business figure in Hong Kong, viewed as a symbol of entrepreneurial success. His legendary status, built on decades of navigating between Western markets and Communist leaders, is seen as a potential threat to Xi’s absolute grip on power.

Li handed over control of CK Hutchison to his son in 2018 but has remained in the public eye. In 2019, he angered pro-Beijing forces by refusing to condemn pro-democracy protests in Hong Kong, signaling a degree of independence that has long irritated Xi.

Al Jazeera suggested this personal animosity may have helped doom the deal. Xi, who has cracked down on rival power centers within China’s business elite, appears determined to make an example of CK Hutchison — and to remind the world that no deal involving Chinese assets moves forward without his blessing.

Legal experts say it will be difficult for China to scuttle the sale if Panama asserts jurisdiction and gives the green light. Beijing may not have the authority to override a Hong Kong-based company’s commercial decision, particularly one involving assets in a sovereign Latin American nation.

But the delay alone sends a chilling message: Xi Jinping sees himself as the CEO of every Chinese business, and no transaction is too big or too distant for him to control. The timing is significant, too — just days before Trump’s “Liberation Day” tariff blitz, a signature move aimed at ending unfair foreign trade practices.

Whether this antitrust probe is a prelude to cancellation or simply a tactic to humiliate Li remains to be seen. Either way, it’s a stark reminder of China’s reach — and of Trump’s resolve to counter it.