The US media outlet Bloomberg has reported that the government of Panama is considering canceling its contract with a Hong Kong-linked company that operates ports near the Panama Canal.

The canal is controlled by the Panamanian government. But the ports of Balboa on the Pacific and Cristobal on the Atlantic are operated by a subsidiary of a Hong Kong-based firm.

The United States is increasingly concerned about Chinese influence on the canal's operation. President Donald Trump has repeatedly said he will demand that the US-built canal be handed back.

US Secretary of State Marco Rubio told Panamanian President Jose Raul Mulino on Sunday, during his trip to the country, that the status quo is a threat.

Bloomberg on Tuesday quoted people with knowledge of the situation as saying the Panamanian government is weighing the possibility of canceling the contract with the ports' operator, which has been extended until 2047.

Multiple media outlets have reported that Panama has proposed free passage through the canal for US naval vessels. Trump has complained that the passage fee is too high.

Panama has also said it will not renew its agreement with China on the Belt and Road initiative, making clear it is distancing itself from China under pressure from the US.