Rubio tells Panama that China threaten canal, changes needed -statement

PANAMA CITY (Reuters) - U.S. Secretary of State Marco Rubio told Panamanian President Jose Raul Mulino in talks on Sunday that President Donald Trump has determined China's influence threatens the Panama Canal and that immediate changes were needed or the U.S. would act, a State Department spokesperson said.

The Panamanian government has vehemently denied ceding operation of the canal to China and insists it administers the canal fairly to all shipping.

Though the canal itself is operated by Panama, the two ports on either side are run by publicly listed Hong Kong company CK Hutchinson, while other ports nearby are operated by private companies from the United States, Singapore and Taiwan.

(Reporting by Simon Lewis; writing by Susan Heavey; editing by Diane Craft)