Panamanian President Jose Raul Molino has denied US President-elect Donald Trump's claims that there are Chinese soldiers stationed in the Panama Canal.
In recent days, Trump has threatened to return the canal to US control, accusing Panama of “robbing” the US by imposing high rates on shipping.
In a message posted on his Truth Social account on Wednesday, Trump wrote: “Merry Christmas to all, including the wonderful soldiers of China who lovingly but illegally run the Panama Canal.”
Mulino called the claim “nonsense” and said there was “absolutely no Chinese interference”.
“There is not a single Chinese soldier in the canal,” he told reporters in Panama City.
Mulino also ruled out reducing tolls for American ships or ceding control of the canal, a major shipping channel that connects the Atlantic and Pacific oceans.
“The canal is Panamanian and belongs to the Panamanians. There is no way to start any conversation around this reality,” he said.
After cutting ties with Taiwan, Panama established diplomatic ties with China in 2017. and Mulino said the relationship between the two countries is “respectful, well-managed … in terms of what is in the interest of both sides.”
His comments came a day after Trump said he would nominate a Florida lawmaker to be his ambassador to Panama.
Kevin Marino Cabrera, a Republican Miami-Dade County commissioner, is working for Trump's 2020 campaign. and this year was Florida's representative to the Republican National Committee.
Announcing his choice in a Christmas post on his Truth Social network, Trump said Cabrera “will do a fantastic job representing our nation's interests in Panama!”.
The president-elect also reiterated claims that Panama is “getting us out.”
on sunday Trump told a crowd of conservative activists: “The fees charged by Panama are ridiculous, grossly unfair.”
If shipping tariffs are not reduced, Trump said, “we will demand that the Panama Canal be returned to us in full, quickly and without question.”
Trump also said he didn't want the Panama Canal to “fall into the wrong hands” and specifically cited China.
According to data, China is the second largest user of the Panama Canal after the US and also has large investments in the Central American country.
On Christmas Day, Trump fired off dozens of messages defending his policies and nominations, and repeated proposals for the US to annex Greenland and Canada.
It's unclear how serious Trump is about territorial moves or how they will be achieved.
Up to 14,000 ships travel through the 51-mile (82 km) canal each year, including container ships carrying cars, natural gas and other goods, as well as warships.
The canal was built in the early 1900s. The US maintained control of the Canal Zone until 1977, when treaties gradually ceded the land back to Panama. After a period of joint control, Panama assumed sole control in 1999.
Transit costs on the canal have increased over the past year due to a historic drought, according to shipping industry website Lloyd's List.
A Hong Kong-based company, CK Hutchison Holdings, operates two ports at the canal's entrances.