"Nonsense": Panama's president slams Trump's claims that Chinese soldiers operate in canal
Panamanian President José Raúl Mulino on Thursday vehemently denied President-elect Trump's claims of Chinese interference in the Panama Canal.
Why it matters: Trump has accused Panamanian authorities of charging "exorbitant" shipping rates and cited the increasing dominance of China's government in trade throughout the Americas as a reason to take control of the Panama Canal, one of the world's most crucial pieces of infrastructure that the U.S. ceded in 1999.
Driving the news: The president-elect doubled down in a Christmas Day message, writing on Truth Social: "Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal."
What they're saying: "There is absolutely not any interference" from China or any other nation in the operation of the canal, Mulino said during a Thursday briefing, emphasizing that Panama is open for business equally to all interested parties.
- "If they're Chinese, if they're Costa Rican, if they're American, all are welcome who want to invest in the country. There is no discrimination here in foreign investment," he said.
- "There are no Chinese soldiers in the canal, for the love of God," added an animated Mulino, addressing Trump's post directly. "It's nonsense. There is not a single Chinese soldier in the canal."
- Representatives for Trump did not immediately respond to Axios' request for comment in the evening.
Between the lines: China's government has in recent years heavily invested in operations in the Canal Zone, raising concerns about its neutrality.
- It's the primary source of products going through the Colón Free Trade Zone, a free port in Panama dedicated to re-exporting a variety of merchandise to Latin America and the Caribbean, noted the Center for Strategic and International Studies in 2021.
- Beijing's "increasing presence in and around the Canal has made the waterway a flashpoint for U.S.-China competition over spheres of influence," added the CSIS in the report.
Go deeper: Trump demands return of Panama Canal if rates aren't cut
Editor's note: This article has been updated with more context.