(Bloomberg) — Hong Kong has expressed its concerns over a recent court ruling in Panama that canceled a contract given to Li Ka-shing’s CK Hutchison Holdings Ltd. to operate two ports near the important canal in the country.

During a meeting with Panama’s consul general, José Ramón de Jesús Varela Fábrega, Hong Kong's Secretary for Commerce and Economic Development, Algernon Yau, raised the issue on Friday. He stated that the court's decision could "seriously undermine international trade rules."

Last month, Panama’s highest court ruled against CK Hutchison's contract, which was seen as a victory for U.S. President Donald Trump's efforts to limit Chinese influence over vital infrastructure in the Americas.

In a Facebook post, Yau noted, "We strongly disagree with and oppose the judgment about the unconstitutionality of the two contracts for the continued operation of the two ports between the Panama government and CK Hutchison." The post highlighted the meeting with the consul general.

Yau also mentioned that CK Hutchison has invested significantly and provided many job opportunities in Panama over the years. He urged the Panamanian government to honor the spirit of the contract and ensure a fair business environment for companies to operate.

China, which is the second-largest user of the Panama Canal after the U.S., warned last week that Panama would face a "heavy price" for what it described as yielding to American dominance.

As part of its broader response to Panama’s decision, China has instructed its state firms to pause talks on new projects in the country, Bloomberg News reported on Friday, citing sources close to the situation.

This court ruling in Panama could escalate tensions between Washington and Beijing, especially as both sides try to maintain a trade truce ahead of Trump’s planned visit to China in April.

Earlier, a group of buyers that includes BlackRock Inc. was reportedly considering abandoning a deal after state-owned China Cosco Shipping Corp. demanded a majority stake, according to the Financial Times. Bloomberg noted that the timing of this transaction remains unclear due to ongoing issues, including Cosco’s involvement and the need for approval from various national regulators.