Donald Trump has begun his second term as president by ramping up pressure on Panama – threatening to “take back” the Panama Canal and accusing the country of ceding control of the strategically critical waterway to a US rival: China.

In the wake of tensions with the United States over the Panama Canal, Panama is abandoning its participation in China's Belt and Road infrastructure development initiative, Panama's President José Raúl Mulino said on Thursday.

In a key concession to Washington, Panama President Jose Raul Mulino on Thursday (Feb 6) confirmed that Panama had pulled out of China's massive Belt and Road Initiative (BRI) infrastructure programme.

China's foreign ministry said on Wednesday it had lodged complaints with the United States over "irresponsible" remarks regarding the Panama Canal and "attacks" on China's cooperation with Panama over the canal.

President Trump is wrong when he says China controls the Panama Canal. But the U.S. rival does have influence there, and the administration is moving to counter it.

Panamanian leader questions intention of those who signed 2017 deal and addresses concerns about Beijing's investment in Panama Canal Panama has officially informed Beijing of its decision to withdraw from China's massive infrastructure and investment project,

President said that Panama's embassy had given China the required 90-day notice of its decision not to renew its involvement in the plan