The Hong Kong Special Administrative Region on Tuesday launched a “strong protest” and delivered a stern rebuke to Panama over its government’s forceful takeover of two key ports on the Panama Canal operated by Hong Kong’s CK Hutchison.

The protest, lodged with Panama’s consul general in the city by Secretary for Commerce and Economic Development Algernon Yau Ying-wah, was made one day after the Panamanian authorities took over control and operations of the Balboa and Cristobal ports from Panama Ports Co (PPC), a subsidiary of CK Hutchison.

In January, the Central American country’s Supreme Court ruled that the contract between PPC and the Panamanian government on the two ports’ operation was unconstitutional, which effectively stripped the company of its legal standing to run the terminals.

The HKSAR government said in a statement that the takeover was “forceful” and “an act of undermining the spirit of the contract”, and also expressed its “strong dissatisfaction and condemnation” over Panama’s move.

The government spokesperson reiterated that the earlier ruling made by the Panama Supreme Court “disregarded facts and breached faith”.

As the relevant company had initiated and commenced arbitration proceedings, the forceful takeover gravely damaged the legitimate rights and interests of the Hong Kong enterprise and undermined the spirit of contracts, the spokesperson said.

The spokesperson added emphatically that the government will “firmly support and safeguard the lawful rights and interests of Hong Kong enterprises overseas”.

The SAR government’s statement also noted that the affected Hong Kong firm had over the years invested heavily in Panama and generated a substantial number of local jobs, slamming the court ruling and Panama’s “unreasonable actions” as an act of self-sabotage that “undermines national credibility” and deals “a serious blow” to the rules-based international trading order.

In a separate statement on Tuesday, CK Hutchison said PPC had ceased operations at the two port terminals on Monday amid a takeover it considered “forceful” and “unlawful”.

According to PPC, the Panamanian government’s representatives arrived “uninvited” at the ports on Monday morning and told PPC personnel on site that the concession “no longer exists” and operations must halt immediately.

The PPC staff were compelled to follow the Panamanian government’s instructions, the statement said.

It further cautioned that actions by Panama’s government pose serious risks to operations and to health and safety at the Balboa and Cristobal terminals, adding that the local government bears full responsibility for any harm or damage resulting from its takeover measures.

Earlier this month, CK Hutchison confirmed that PPC has decided to take Panama to arbitration proceedings.

PPC and CK Hutchison will continue to consult with legal advisers regarding the court’s ruling and forceful takeover, the purported termination of PPC’s concession and all available recourse including additional national and international legal proceedings against the Republic of Panama to reserve all rights and recourse against them, the statement said.