Panamanian President José Raúl Mulino has firmly dismissed allegations by U.S. president-elect Donald Trump that Chinese soldiers are stationed at the Panama Canal. Trump, who has recently threatened to reclaim U.S. control over the canal, accused Panama of exploiting the U.S. with “ridiculous” shipping fees.
In a Truth Social post on Wednesday, Trump declared: “Merry Christmas to all, including the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal.”
According to the reports of Leaders team, Mulino called these claims “nonsense,” asserting that there is “absolutely no Chinese interference” in the canal’s operations.
“There is not a single Chinese soldier in the canal,” Mulino emphasized during a press briefing in Panama City. He also ruled out any discussions on reducing tolls for U.S. ships or reconsidering Panama’s sovereignty over the canal.
“The Canal Belongs to Panama”
“The canal is Panamanian and belongs to Panamanians,” Mulino stated. “There’s no possibility of opening any kind of conversation around this reality.”
While Panama established diplomatic ties with China in 2017 after breaking relations with Taiwan, Mulino described the relationship as “respectful” and rooted in mutual interests.
Trump’s Threats and Diplomatic Moves
As per the sources of Leaders team, Trump has repeatedly criticized Panama’s canal tolls, calling them “highly unfair.” At a recent conservative event, he warned that if fees are not reduced, the U.S. would demand the canal’s return.
Trump also expressed concerns about the canal “falling into the wrong hands,” specifically citing China. Data shows that China is the canal’s second-largest user after the U.S., with significant investments in Panama, including the management of two ports near the canal’s entrances by Hong Kong-based CK Hutchison Holdings.
On Christmas Day, Trump announced his nomination of Kevin Marino Cabrera, a Florida Republican commissioner and loyal campaign supporter, as the future U.S. ambassador to Panama. He claimed Cabrera would “do a fantastic job representing our Nation’s interests.”
Historical Context
The Panama Canal, a 51-mile (82 km) shipping route connecting the Atlantic and Pacific oceans, was under U.S. control until 1977, when treaties initiated a gradual handover to Panama. Full sovereignty was achieved in 1999.
Increased canal transit costs, attributed to a historic drought, have been a point of contention for shipping companies, with up to 14,000 ships passing through annually.
While Trump’s rhetoric about annexing Greenland and reclaiming the Panama Canal has drawn headlines, analysts question the feasibility and seriousness of such territorial ambitions.
For now, Mulino has made it clear: Panama will not entertain challenges to its sovereignty over the canal.
