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.

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.

The lawsuit claims that the contracts allowing Hong Kong-owned CK Hutchison Holdings to operate two ports at either end of the canal violate Panama's constitution.

Two Panamanian lawyers filed a complaint on 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.

If such a move goes through, it would mark a major gift to Trump, who says that China has too much control over the canal and hasn’t ruled out seizing it by force.

Panama’s government and President José Raúl Mulino have repeatedly denied that there is any Chinese presence at the canal.

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

Panama could cancel its contract with Hong-Kong based Hutchison Ports PPC that operates near the Panama Canal. This after President Donald Trump has raised questions about China's influence over the canal.