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In response to pressure from the Trump administration, Panama has withdrawn from China’s Belt and Road Initiative. Eric Olander, co-founder of the China-Global South Project, says the U.S. president will likely feel emboldened to seek similar leverage from the more than 100 other countries that are still part of Beijing's infrastructure project.

By Frankie Mills Panama has strongly rejected US claims about securing free passage for government vessels through the Panama Canal, whilst announcing its withdrawal from China's Belt and Road Initiative amidst growing US pressure over alleged Chinese influence in the region.

Following Donald Trump’s repeated claims that the US needs to “ take back ” the Panama canal from Chinese control, the US secretary of state, Marco Rubio, visited Panama to demand the country reduce China’s influence. On the surface, it seems Rubio has succeeded.

The Belt and Road Initiative is President Xi Jinping’s signature foreign police drive to bind China closer to countries in the region and beyond.

At a regular press briefing, a ministry spokesperson, Lin Jian, said China deeply regretted Panama's decision. "We hope that Panama will make the right decision based on the overall situation of bilateral relations and the long-term interests of the two peoples,