China has instructed carriers Maersk and MSC to stop operating the ports on the Panama Canal, according to a report by the Financial Times published this week.

The request relates specifically to the Balboa and Cristobal terminals, which are located at opposite ends of the canal.

According to the newspaper, the demand was communicated during a meeting held last month between representatives of the two shipping groups and China’s National Development and Reform Commission.

Citing two people familiar with the discussions, the report said Maersk and MSC were told to withdraw from the two ports immediately.

At the same meeting, the companies were warned not to “engage in illegal activities that harm the interests of Chinese companies, and to uphold commercial ethics and international rules,” according to the Financial Times.

However, despite the instruction, port operations are continuing under temporary arrangements approved by Panama.

The country has granted 18‑month concessions allowing the terminals to remain operational, with APM Terminals, a Maersk unit, managing Balboa, and TIL Panama, controlled by MSC, operating Cristobal.

The situation follows a ruling by Panamanian authorities that the contract held by Hong Kong‑based CK Hutchison to operate the two terminals was unconstitutional.

The concession was revoked, after which Maersk and MSC assumed operational responsibility at Panama’s request. CK Hutchison has since filed an arbitration case against Maersk through a subsidiary in Panama, a claim that Maersk has rejected.