Hong Kong’s CK Hutchison Group has threatened legal action against Danish shipping giant Moller-Maersk after Panamanian authorities appointed the company to temporarily take over operations of two strategic ports at either end of the Panama Canal.

CK Hutchison said in a statement on Thursday AP Mueller-Maersk warning “Any steps” taken by the Danish group or its subsidiaries to operate the port without its consent could “lead to legal recourse”. That’s according to CNBC’s translation of the Chinese statement.

this A simmering dispute Panama has become a geopolitical flashpoint between Washington and Beijing.

CK Hutchison negotiated a $23 billion deal with a consortium led by BlackRock to sell its non-Chinese port unit after U.S. President Donald Trump claimed last year that China “runs the Panama Canal.” Beijing quickly stepped in, calling the sale “kowtow” bowed to U.S. pressure and delayed the deal.

Tensions heightened last month after Panama’s Supreme Court ruled that a concession held by a CKH Holdings subsidiary to operate the two ports was illegal. “Unconstitutional”. The company countered that it “Strongly disagreed” with the ruling and initiated arbitration proceedings against Panama.

Changhe Thursday also Notify Panama of a Separate Dispute It will pursue “all available recourse, including additional domestic and international legal proceedings” under an investment protection treaty.

Maersk subsidiary APM Terminals has asked to take over the ports, It is said It said it was not a party to the legal dispute and was merely offering to intervene temporarily “to mitigate risks that may impact regional and global trade in essential services.”

Maersk shares fell more than 3% in Copenhagen on Thursday.

Risks around Panamanian ports have risen sharply this year. The Panamanian court ruling is seen as a major victory for the United States, as the White House has Block China’s influence Crossing the arteries of global trade is one of its top priorities.

Beijing issues strongest condemnation yet warn On Wednesday, the Central American country “will inevitably pay a heavy price politically and economically” unless it changes course. Beijing’s Hong Kong and Macao Affairs Office called the court’s ruling “logically flawed” and “completely absurd.”

China also guided State-owned companies have halted talks on new projects in Panama and asked shipping lines to consider rerouting cargo through other ports, Bloomberg reported last week.

The Panama Canal is an important trade channel connecting the Atlantic and Pacific Oceans Accounts for 40% of all container traffic in the United States each year. Panama Ports, a subsidiary of CKH Holdings, has operated the ports since 1997 and renewed the 25-year agreement in 2021.

The canal was built by the United States in the early 20th century and operated for decades before handing over full control to Panama in 1999.

analyst Anticipate controversy A year of ongoing tariff tensions, Beijing’s tightening controls on rare earth exports, the Taiwan dispute and Washington’s restrictions on technology exports have worsened what could have been a strained Sino-U.S. relationship.

CK Hutchison said on Thursday that the continued operation of the two ports “depends entirely on the actions of the Supreme Court of Panama and the State of Panama” over which CK Hutchison has no control.