Tung died peacefully surrounded by family, according to a statement from his office cited by Hong Kong public broadcaster RTHK. No cause of death was immediately disclosed.

His death closes the life of a businessman who became the first leader of the Hong Kong Special Administrative Region and governed during some of the most difficult early years of the territory’s transition to Chinese sovereignty.

Tung became Hong Kong’s first post-handover leader

A shipping executive and heir to the Orient Overseas business founded by his father, Tung was selected in 1996 by a Beijing-aligned committee to become Hong Kong’s first chief executive. He took office on July 1, 1997, when Britain handed sovereignty over Hong Kong to China.

In his first address as chief executive, Tung said the new administration was committed to maintaining Hong Kong’s way of life and its open economic system under the “one country, two systems” framework. Official records identify him as the territory’s first chief executive.

His administration initially faced the Asian financial crisis and other economic pressures. Hong Kong also confronted outbreaks of bird flu and SARS, which placed additional strain on the government during its first years after the handover.

Article 23 became a turning point

Tung’s administration suffered a major political setback in 2003 when it sought to introduce legislation under Article 23 of Hong Kong’s Basic Law.

The proposed legislation would have created offenses related to national security, including treason and sedition. Critics argued that it threatened civil liberties and expanded government powers.

About 500,000 people took part in a mass protest against the proposal in July 2003. Tung’s government subsequently withdrew the legislation. The episode sharply damaged his political standing and became an important turning point in Hong Kong’s relationship with Beijing and its democratic movement.

Tung resigned in March 2005, saying that declining health prevented him from continuing as chief executive. He was succeeded by Donald Tsang.

He remained influential after leaving office

Tung did not leave public life after his resignation. He became vice chairman of the Chinese People’s Political Consultative Conference, China’s top political advisory body, and remained an influential figure in Beijing’s political establishment.

He later founded the Our Hong Kong Foundation and the China-United States Exchange Foundation. The latter describes Tung as its founding chairman and former chief executive of Hong Kong.

Tung also remained a strong supporter of Beijing’s policies toward Hong Kong. He defended the national security law imposed on the territory in 2020 and supported the changes to Hong Kong’s electoral system introduced in 2021.

A legacy shaped by Hong Kong’s transition

Tung’s political legacy is closely tied to the early test of “one country, two systems,” the governing framework under which Hong Kong returned to Chinese sovereignty while retaining a separate economic and legal system.

His tenure demonstrated both the challenges of that transition and the growing political tensions over Hong Kong’s relationship with mainland China.

Tung left office more than two decades ago, but he remained associated with the political evolution that followed. The 2003 Article 23 controversy preceded later pro-democracy protests, including major demonstrations in 2014 and 2019, while Beijing subsequently strengthened its control over the territory.

Tung’s death therefore comes as Hong Kong operates under a substantially different political environment from the one he inherited in 1997.

Reporting Credit: Tung Chee-hwa’s office — statement confirming his death and that he died peacefully with family; Hong Kong Special Administrative Region Government — official records and historical statements documenting Tung’s tenure as the first chief executive; China-United States Exchange Foundation — biographical information on Tung’s post-government roles and public activities.

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Beijing’s Reaction to the Deal

Over the past week, China’s Hong Kong affairs offices have published critical commentaries from state-backed media outlets condemning the transaction. The controversy raises questions about the deal’s future and highlights the complex challenges Hong Kong businesses face in balancing Beijing’s political expectations with their own capitalist interests.

Who is Li Ka-shing?

Nicknamed “Superman,” Li Ka-shing, 96, is one of the world’s 50 richest people, with a net worth of $38 billion, according to Forbes. Although he retired as chairman of CK Hutchison in 2018, handing over leadership to his son Victor Li, he remains one of Hong Kong’s most influential business figures.

Li’s empire spans real estate, retail, telecommunications, and utilities. His global assets include the British drugstore chain Superdrug and European mobile network operator Three.

Li’s Relationship with Beijing

Li has long maintained close ties with China’s Communist Party leadership and previously served on the elite committee responsible for selecting Hong Kong’s chief executive. Beijing once valued Hong Kong’s business elite for their global networks and resources, which played a crucial role in China’s economic development.

However, Li has faced political backlash for his business decisions. In 2015, he was criticized for selling off mainland Chinese assets. During the 2019 pro-democracy protests, he was also attacked by pro-Beijing supporters for not taking a strong enough stance against the movement.

The Panama Canal Ports Deal

On March 4, CK Hutchison announced the sale of its global port assets—including the Balboa and Cristobal ports at the Panama Canal—to a consortium that includes:

• BlackRock’s Global Infrastructure Partners
• Terminal Investment Limited (chaired by Italian shipping magnate Diego Aponte)

The deal, valued at nearly $23 billion, includes $5 billion in debt but excludes ports in Hong Kong or mainland China. CK Hutchison insists the transaction is purely commercial.

Geopolitical Ramifications: U.S. vs. China

The deal has pleased the Trump administration but angered Beijing. A Beijing-backed newspaper described it as a “betrayal of all Chinese”, while another commentary suggested that true “great entrepreneurs” must be patriotic and not align with the U.S.

On Chinese social media platform Weibo, public sentiment has largely been critical of Li, with many condemning the move as disloyal to China.

Strategic Importance of Ports

Ports are highly strategic assets, and transactions involving them often attract political scrutiny. Some reports suggest Beijing was not consulted before the sale, which may have contributed to its frustration.

According to Wilson Chan, co-founder of the Pagoda Institute, canceling the deal now would be risky:

“You just let Trump take credit for it, then you later say ‘Sorry, I’m canceling the deal.’ Imagine Trump’s reaction—this would affect how the world views Hong Kong’s business autonomy.”

For now, CK Hutchison has remained silent, choosing not to address the controversy directly in its 2024 financial results announcement.

Long-Term Implications for Hong Kong

The controversy underscores ongoing tensions between Beijing and private businesses in Hong Kong.

• The Trump administration previously sanctioned Chinese and Hong Kong officials for undermining the city’s autonomy.
• Beijing has tightened its grip on Hong Kong since the 2019 pro-democracy protests.
• Some analysts suggest Li may attempt to appease critics by reinvesting proceeds from the deal into projects that align with Beijing’s policies.

According to George Chen of The Asia Group, the situation illustrates how Washington’s concerns over Hong Kong’s business autonomy are well-founded:

“This is bad for the defense of ‘one country, two systems.’”

As tensions escalate, all eyes will be on whether Beijing exerts more pressure on Li Ka-shing and whether Trump’s administration retaliates with new sanctions.

Source: AP News – Hong Kong’s richest man is in hot water over his company’s Panama Canal ports deal

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