The new administration's immigration crackdown is likely to be among the top issues during talks, but US President Donald Trump's claim that the Central American nation had ceded control of the Panama Canal to China will also loom large.

China Wednesday claimed it has never interfered in the Panama Canal amid threats of overtaking the shipping channel by the newly inaugurated US President Donald Trump, state media reported. Beijing has “not been involved in the management or operation of the Panama Canal,” Foreign Ministry spokeswoman Mao Ning told reporters in the Chinese capital.

On Christmas Day, Trump posted on social media that the "wonderful soldiers of China" were "lovingly, but illegally, operating the Panama Canal" - a claim which was swiftly denied by officials in Panama City and Beijing.