Panamanian President José Raúl Mulino has refuted allegations by U.S. President-elect Donald Trump that Chinese troops are stationed in the Panama Canal.

More recently, Trump has threatened to bring the canal back under U.S. control and accused Panama of "exploiting" the U.S. with high shipping rates.

"Merry Christmas to everyone, including those lovely Chinese soldiers who illegally operate the Panama Canal," Trump wrote in a message posted on his Truth Social account on Wednesday.

Mulino called Trump’s accusations “complete nonsense” and said there was “absolutely no Chinese interference” in the canal, while refusing to reduce tolls for U.S. ships or cede control of the canal, a vital waterway connecting the Atlantic and Pacific Oceans.

"The canal belongs to Panama and the Panamanian people. There is no possibility of any kind of dialogue on this fact," Mulino said.

Panama established diplomatic ties with China in 2017 after cutting ties with Taiwan, and Mulino noted that relations between the two countries are "mutually respectful and well managed ...

in the interests of both sides." His comments came a day before Trump said he would nominate a Florida lawmaker as ambassador to Panama.

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