PANAMA CITY, Sept 9, 2026 (BSS/AFP) - China has expressed strong opposition to a new parliamentary group in Panama that aims to strengthen ties with Taiwan, calling it "flagrant interference" in its internal affairs.

Panamanian President Jose Raul Mulino distanced himself from the initiative, which was launched Tuesday by a majority of lawmakers.

The Central American nation established diplomatic relations with China in 2017 after severing ties with the island of Taiwan -- a self-governing democracy that Beijing regards as a renegade province.

On Tuesday, 45 of the 71 deputies in Panama's National Assembly formed the group to seek investment and foster commercial and political exchanges with Taiwanese business leaders and parliamentarians.

In a statement Tuesday, China's embassy in Panama expressed "strong dissatisfaction and firm opposition" to the decision, accusing the lawmakers of "flagrant interference in China's internal affairs".

The statement asserted that the parliamentary group "violates the 'One China' principle... contradicts the Panamanian state's foreign policy, and sends the wrong signal". It said the lawmakers were undermining bilateral relations.

Medin Jimenez, a lawmaker of the opposition Panamenista Party, told AFP that Panama is "neutral" and "must strengthen all its relations with friendly nations".

The group includes lawmakers from various parties. According to local media, officials from the National Assembly leadership attended the launch event.

However, Mulino, the president, wrote on his X account that "outreach, travel, and exchanges by Assembly members with Taiwan do not imply endorsement by the Executive branch."

In recent months, about 20 Panamanian lawmakers have traveled to Taiwan and met officials and business leaders.

Opposition lawmaker Jose Perez told EcoTV it was cooperation between two countries that "understand democratic values".

The goal is to seek "benefits for the Panamanian people", such as scholarships and knowledge exchange, he added.

Panama's relations with China have cooled following the Panamanian judiciary's decision to cancel a concession granted to a Hong Kong-based company to operate two ports on the Panama Canal, which connects the Caribbean Sea with the Pacific Ocean.

The cancellations followed pressure from US President Donald Trump, who threatened to take over the canal, claiming it was being controlled by Beijing.