China rebuffs Trump threat over Panama Canal; says it should remain neutral

China Monday backed Panama President Jose Raul Mulino's assertion of his country's sovereignty over the Panama Canal against US President-elect Donald Trump's threat to regain control of it if the central American country doesn't stop charging "exorbitant prices" to US ships and naval vessels.

The 82-km Panama Canal cuts across the central American nation and is the main link between the Atlantic and Pacific oceans. 

 

If shipping rates are not lowered "we will demand that the Panama Canal be returned to us, in full, quickly and without question, Trump told a crowd of supporters in Arizona on Sunday.

 

His remarks prompted a quick rebuke from Mulino, who said, "every square metre" of the canal and surrounding area belongs to his country.

Panama's sovereignty and independence were non-negotiable, BBC quoted Mulino as saying.

Asked for her comments at a media briefing here, Chinese Foreign Ministry spokesperson Mao Ning referred to Mulino's assertion of Panama's sovereignty.

The Panama Canal is a great creation of the people of Panama. It is a golden waterway for connectivity among countries. China has always supported the people of Panama in their just struggle for sovereignty over the Canal," she said.

China will as always respect Panama's sovereignty over the Canal and recognise the Canal as a permanently neutral international waterway, she said.

The Panama Canal was built in the early 1900s. The US maintained control over the canal zone until 1977 when treaties gradually ceded the land back to Panama.

After a period of joint control, Panama took sole control in 1999.

Up to 14,000 ships cross the canal annually, including container ships carrying cars, natural gas and other goods, and military vessels, according to a BBC report.