Last month, Panama's Supreme Court cancelled the contracts of a Hong Kong based firm that allowed it to operate the ports.

In March last year it seemed that Mr Trump’s canal issues might be resolved with a commercial transaction. A consortium of Western companies would acquire the ports as part of a wider deal with CK Hutchison.

The Panama Supreme Court on Wednesday ruled to void the contract of the Hong Kong-based CK Hutchison Holdings ADR CKHUY to operate ports at both ends of the Panama Canal. • CK Hutchison Holdings stock is showing upward bias. Where is CKHUY stock headed?

The simmering dispute has become a geopolitical flashpoint between Washington and Beijing, with Panama caught in the crossfire.

President Donald Trump has invited Latin American leaders to take part in a summit in Florida next month, gathering the officials at a moment when the administration is spotlighting what it sees as concerning Chinese influence in the region.