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.

Panama's decision to leave a key investment deal with China has drawn accusations from Beijing of "pressure and coercion" by the Trump administration.

China on Friday lashed out at what it called U.S. “coercion” after Panama declined to renew a key infrastructure agreement with Beijing following Washington’s threat to take back the Panama Canal.Foreign Ministry spokesperson Lin Jian said at a briefing that China “firmly opposes the U.

In response to pressure from the Trump administration, Panama has withdrawn from China’s Belt and Road Initiative.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.