The Chinese government has slammed the Panama Supreme Court after the body ruled to revoke the license of CK Hutchison, a Hong Kong-based company that operates the Panama Canal.
China warned that the United States (US) would pay a 'heavy price' politically and economically if it did not change course.
The decision was seen as a major victory for the White House in achieving President Donald Trump's goals in the Western Hemisphere.
This situation occurred after the US acted to restrict China's influence over the waterway, which it considers a strategic priority.
In a comment on WeChat, the Hong Kong and Macao Affairs Office of the State Council described the decision as 'absurd' and 'nonsense.'
In this regard, the Chinese government and the Hong Kong Special Administrative Region (SAR) unanimously rejected the decision.
Both sides also stressed that the Panamanian authorities should take this issue seriously and immediately take appropriate action.
The Panamanian Supreme Court on January 29 declared that the Panama Ports Co. (PPC) at the Balboa and Cristobal Ports is unconstitutional.
The CK Hutchison subsidiary was found to be operating the two main ports on the Panama Canal under terms that violate the country's highest law.
The ruling comes about a year after Trump threatened to seize control of the Panama Canal.
He also stressed that the waterway is vital to the US and claimed that the canal is now operated by China.
