US President-elect Donald Trump threatens to take back the Panama Canal.

After US President-elect Donald Trump threatened to take back the Panama Canal, China on Monday backed Panama President Jose Raul Mulino’s assertion that “every square meter” of the canal and surrounding area belongs to his country. China supported Mulino’s statement regarding his country’s sovereignty over the Panama Canal. Earlier, Trump accused Central American countries of charging “exorbitant prices” to US ships and naval vessels. Panama’s sovereignty and independence were non-negotiable, BBC quoted Mulino as saying.

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When asked for her comments at a media briefing, the Chinese Foreign Ministry spokesperson Mao Ning referred to Mulino’s assertion of Panama’s sovereignty.

“The Panama Canal is a great creation of the people of Panama. It is a golden waterway for connectivity among countries. China has always supported the people of Panama in their just struggle for sovereignty over the Canal,” she said.

“China will as always respect Panama’s sovereignty over the Canal and recognise the Canal as a permanently neutral international waterway,” she said.

Earlier, Trump said that if shipping rates are not lowered, the United States will demand that the Panama Canal be returned “in full, quickly and without question”.

The Panama Canal, which is an 82-km waterway, cuts across the Central American nation and is the main link between the Atlantic and Pacific oceans. It was built in the early 1900s, The US maintained control over the canal zone until 1977 when treaties gradually ceded the land back to Panama.

After a period of joint control, Panama took sole control in 1999. According to a BBC report, up to 14,000 ships cross the canal annually, including container ships carrying cars, natural gas and other goods, and military vessels.

Moreover, it was in 1977 when under a treaty, the control of the Panama Canal was transferred to Panama from the United States. Former US president Jimmy Carter is hailed for this treaty, however, Trump describes the move as, “foolishly giving it away for one dollar.”