President Donald Trump’s newly appointed head of the Federal Maritime Commission Louis Sola says that Panama has been inching closer to China — a risk that Trump alluded to a few weeks ago when he said he would not rule out using the military — and American businesses have been prevented from fairly bidding for business.

In his first interview since being appointed by Trump to the administration’s top maritime role, the FMC chairman told CNBC that the U.S. government wants every business worldwide to compete on a level playing field for Panama Canal and Panama ports business, including China, but the FMC is concerned that is not happening. The FMC has received complaints that some Chinese companies are getting reimbursed for canal transits, while American companies pay the ocean carriers for the transits and associated costs and are not being reimbursed.

“I find the entire practice alarming, that canal tolls would be refunded for any reason whatsoever, especially when Panama has a neutrality contract or neutrality clause in their treaty,” said Sola. “So I think that [Panama’s government] really needs to take a look at that.”