The allegation of China's infiltrating in and exerting influence on the Panama Canal is "sheer fabrication with ulterior motives," Chinese Foreign Ministry spokesman Zhu Bangzao said in Beijing on January 13.

Zhu made the remarks in response to the allegation in a United States Pentagon report that China attempts to take a dominant share of the Panama Canal through a Hong Kong-based company so as to transport military equipment.

China hopes that all parties concerned will bear a "responsible and far-sighted manner" in this matter, realize the fundamental interests of both peoples in China and the United States, and do things that will maintain and promote bilateral relations." he said.