The controller general of Panama said CK Hutchison, a Hong Kong conglomerate, did not properly renew its license to operate two ports that are part of a $19 billion deal involving BlackRock.

A subsidiary of a Hong Kong conglomerate, which is embroiled in U.S.-China tensions over its Panama Canal port assets has denied allegations that it had failed to pay about $1.2 billion to the Central American country.

The Panamanian government is resisting the whims of the head of the Pentagon to establish American bases there. Businessman Li Ka-shing and his conglomerate CK Hutchison, which manages the port terminals,