Trump, China Ramp Up Panama Canal Pressure With Li Deal in Limbo

China dialed up scrutiny of Hong Kong billionaire Li Ka-shing’s planned Panama ports sale to a BlackRock Inc.-backed group while Donald Trump sought preferential treatment for US ships in the waterway, adding to uncertainty over whether the blockbuster deal will proceed.

China’s market regulator said Sunday that its review of Li-owned CK Hutchison Holdings Ltd.’s sale of dozens of ports would cover all parties involved, and that the deal shouldn’t be implemented without the body’s approval.

Although the transaction only concerns CK Hutchison’s assets outside of China and Hong Kong, the regulator’s statement is seen as an ...