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Officials at party for Panama Canal

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Two senior Chinese officials attended a reception in Beijing hosted by Panama's trade representative on the mainland to celebrate the handover of the Panama Canal.

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Vice-Minister of Transport Hong Shanxiang and Zeng Jianhui, director of the Foreign Affairs Committee of the National People's Congress, were present on Monday as representative Dario Ochao promised the canal would help accelerate the expansion of China's trade with the rest of the world.

Panama recognises Taiwan, not Beijing, but Mr Ochao said there were no plans to switch ties, although the present Panamanian Government was more interested in considering the issue than its predecessor.

Mr Ochao said it was far-fetched to imagine the canal being embroiled in any dispute between Beijing and Taipei. Taiwan's Evergreen company manages a port along the canal.

In September, the Panamanian Government sent an adviser to Beijing for talks. A mainland vice-foreign minister went to Panama in October.

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'China is interested in using Panama to distribute goods around the region,' Mr Ochao said. 'They have expressed interest in establishing some companies in the Colon Free Trade Zone' Beijing had been surprised by arguments put forward in the United States by those opposed to the handover of the canal, Mr Ochao said.

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