China has ordered Europe's two largest shipping companies to stop operating ports on the Panama Canal, reported London's Financial Times, weeks after a court ruling transferred control from Hong Kong's CK Hutchinson.

In talks last month with China's state planner, Danish group Maersk and Switzerland-based Mediterranean Shipping Company (MSC) were told to withdraw from the canal's ports. They were also warned not to engage in "illegal activities that harm the interests of Chinese companies" and to respect commercial ethics and international rules, sources said.

Maersk chief executive Vincent Clerc attended a meeting with officials in Beijing while MSC president Diego Aponte has been corresponding with regulators in writing.

One person familiar with the discussions said if the European operators pulled out, US companies would likely take over the concessions, an outcome viewed as worse for Beijing.