BEIJING, Feb 7 (Reuters) - Hong Kong's commerce chief on Friday summoned the Panamanian Consul General in the city to condemn a court ruling that annulled Hong Kong-based CK Hutchison's 0001.HK contract to operate two ports at the Panama Canal.

The move came after China's Hong Kong and Macau Affairs Office warned Panama of "heavy prices" to pay over the decision earlier this week.

Hong Kong's Secretary for Commerce and Economic Development, Algernon Yau Ying-wah, expressed "strong dissatisfaction and opposition" to the Panama Supreme Court's decision during a meeting with the Panamanian Consul General, Jose Ramon de Jesus Varela Fabrega, according to a post by the bureau on Friday.

Yau said the company had made large investments and created jobs in Panama over many years. He criticised Panama for "destroying its national credibility" in a move that he said would cause far-reaching damage to the country's business environment and economic development and seriously undermine international trade rules.

He urged the Panamanian government to respect the spirit of the contract and provide a fair and just business environment for companies lawfully operating locally.

"Hong Kong companies operating and investing in Panama should receive fair and reasonable treatment and protections," Yau said.

CK Hutchison has moved to challenge the ruling, with its Panama Ports Company unit launching international arbitration proceedings.

Panamanian President Jose Raul Mulino on Thursday called the court's decision definitive and said he didn't expect the situation to escalate.

"Panama is a dignified country and will not allow itself to be threatened by any country on earth," he said.

(Reporting by Beijing newsroom; Editing by Sam Holmes)