China opposes economic coercion regarding Panama Canal port sale

China reiterated its opposition on Wednesday to economic coercion and bullying regarding Hong Kong-based CK Hutchison's sale of ports on the Panama Canal, and said that it supports Panama in safeguarding its legitimate rights and interests.

Ricaurte Vasquez Morales, administrator of the Panama Canal Authority, voiced concerns on Tuesday about the proposed $23 billion global ports transaction, which includes two Panamanian terminals. He warned that the deal could compromise the canal's longstanding commitment to neutrality.

The Panamanian official told the Financial Times that there is a potential risk of capacity concentration if the deal comes the way it is structured, and will undermine Panama's competitiveness in the market.

Vasquez also addressed a US request for free passage of government vessels through the canal, clarifying that "free is not an option as presented".

China will, as always, respect Panama's sovereignty over the canal and recognize its status as a permanently neutral international waterway, Foreign Ministry spokesman Lin Jian said at a regular news conference.

China supports Panama, as a sovereign and independent nation, to stick to independence and autonomy, he said.