PANAMA CITY, Feb 26 (Reuters) – Panamanian officials conducted a search at a port facility operated by Hong Kong's CK Hutchison in Panama on Thursday. This action highlights tensions over the control of two important ports in the Panama Canal.

This search occurs against a backdrop of increased competition between the U.S. and China over global trade routes, which has raised tensions between the two nations and impacted CK Hutchison's Panama Ports Company (PPC). Until recently, PPC managed two terminals at both the Pacific and Atlantic ends of the Panama Canal.

Sources indicate that the search was not related to any government decision to terminate PPC's contracts for managing the ports.

The individual who provided this information spoke on the condition of anonymity as the details had not yet been made public.

CK Hutchison has not provided any comments regarding the situation.

The Panamanian government stated, “This is an independent investigation carried out exclusively by the Public Ministry of Panama in the exercise of its legal powers,” without mentioning CK Hutchison as the focus of the search.

Prior to the search, Panama’s President Jose Raul Mulino expressed uncertainty about China's potential response to CK Hutchison's loss of the ports, asserting that Panama would act if necessary.

He remarked, “If you want my personal opinion, nothing is going to happen. What has Panama gained from its ties with China? Sure, it’s a very important country globally. Panama has faced more challenging situations before, so when it comes, we’ll see.”

Panama’s foreign ministry has communicated its stance to the Chinese ambassador.

The Chinese Foreign Ministry and Hong Kong authorities have not yet commented on Mulino's statements.

On Friday, CK Hutchison's shares dropped by 2.1% during trading in Hong Kong.

The Hong Kong-based company had previously agreed to sell numerous ports globally, including the ones in Panama, for $23 billion to a consortium led by BlackRock and Mediterranean Shipping Company (MSC).

This deal has faced criticism from Beijing while receiving support from U.S. President Donald Trump, who aimed to lessen China's influence over the canal's key assets.

The Balboa and Cristobal ports, central to this dispute, will now be temporarily managed by Maersk and MSC, as announced by the Panamanian government earlier this week.

Local media reported on the raid, with TVN showing footage of several individuals, some in vests labeled with Panama's investigative police (DIJ), in an underground parking garage in the upscale Albrook area of Panama City. The footage depicted some of these individuals loading boxes into a police vehicle.

The exact location was not clearly identified in the images, and Reuters has not been able to independently confirm the account.

Recently, Panama's highest court deemed CK Hutchison's contracts for operating the canal ports unconstitutional, prompting the government to void the agreements.

This decision has instigated a conflict involving both Beijing and Washington, following pressure from Trump for Panama to limit Chinese influence over the canal, which handles around 5% of global maritime trade.

CK Hutchison has stated that it views the court's decision as unlawful and is contemplating legal action.