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.

China's Foreign Ministry spokesman Lin Jian said at a briefing that China 'firmly opposes the US smearing and undermining the Belt and Road co-operation through means of pressure and coercion'

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.