In Panama, Trump's new ambassador casts China as threat to frayed alliance

PANAMA CITY: The United States' new ambassador to Panama pledged on Thursday to strengthen ties with the Central American country while pushing China as a common threat.

"First among my priorities will be to strengthen our joint work to counter harmful influences in the region, such as that of China," Ambassador Kevin Cabrera said during a press conference at his official residence.

Cabrera arrived in the country late last month following an escalation of tensions between Washington and Panama City.

China's presence in Panama has been a point of a criticism from U.S. President Donald Trump, who has said his administration would "take back" the Panama Canal from Chinese influence.

"China is not a good ally neither for Panama nor for our hemisphere," Cabrera said on Thursday, adding that the two countries would collaborate on issues of drug trafficking and to boost security at the Panama Canal.

Later on Thursday, China's embassy in Panama rejected the U.S. ambassador's remarks as "contrary to basic facts," also citing Panama President Jose Raul Mulino's denials of Chinese interference in the Panama Canal.

"The cooperation between China and Panama on the Belt and Road Initiative has achieved fruitful results," said the spokesperson for the Chinese embassy.

The embassy also said the relevant Chinese authorities are conducting an antitrust review in accordance with the law, which is fully consistent with international practices.

In early April, Panama's Attorney General's Office opened an investigation into a contract granted to Hong Kong-based CK Hutchison the operation of two ports in the Central American country.