Panama is weighing whether to cancel its contract with the Hong Kong-based company that operates ports near the Panama Canal, according to people with knowledge of the situation, a potential concession to defuse President Donald Trump’s threats about countering China’s influence around the key waterway.

Even though the Panama Canal is run by an autonomous entity overseen by the Panamanian government, the U.S. government claims China exerts influence through a Hong Kong-based comp

Two Panamanian lawyers filed a complaint Monday to cancel the concession of a Hong Kong-based company for operating two ports on the Panama Canal, following US President Donald Trump's threats to seize the vital waterway.