BANGKOK, Thailand: Hong Kong has formally protested Panama's decision to take control of two strategically important ports at either end of the Panama Canal, escalating tensions over assets long operated by a Hong Kong-based company.

In a statement on February 24, Hong Kong's Commerce and Economic Development Bureau said it had lodged "stern protests" with Panama's consulate and expressed strong opposition and dissatisfaction over the move. The government said it would "staunchly support the legitimate rights and interests of Hong Kong corporations overseas."

The two ports, located at the Pacific and Atlantic entrances of the canal, have been operated since 1997 by Panama Ports Company, a subsidiary of Hong Kong conglomerate CK Hutchison. The concession became embroiled in a legal dispute after being caught up in intensifying U.S.-China competition for influence in the region. The issue gained global attention after U.S. President Donald Trump accused China of "running the Panama Canal."

On February 23, Panama's government assumed control of the ports after the country's Supreme Court struck down the law approving the concession contract. The ruling effectively removed the legal basis for Panama Ports Company's operations. The company has since initiated arbitration proceedings against Panama.

China's Ministry of Foreign Affairs also responded the next day. "China will firmly safeguard the company's legitimate and lawful rights and interests," spokesperson Mao Ning said at a regular press briefing.

Panamanian authorities said operations at the canal would continue without disruption.

The director of ports for Panama's Maritime Authority said at a press conference that the agency "took possession of its ports and will guarantee continuity of operations." He added that the authority's board would approve a transitional plan that would allow operations for up to 18 months until long-term operators are selected.

In a televised address later in the day, President José Raúl Mulino said the move was not an expropriation. The government, he said, would retain control of the ports "until their real value is determined for corresponding actions." He added that "everything done was not against anyone, but in compliance with the law," referencing objections raised by the company and by China.

The ports are also slated for sale under a deal reached by CK Hutchison with a consortium of buyers that includes BlackRock. That agreement followed pressure from the Trump administration last year, urging Panama to reduce Chinese influence over the canal.

The Panama Canal remains one of the world's most critical trade routes, linking the Atlantic and Pacific oceans and handling a significant share of global maritime traffic.