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.

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.

President José Mulino said Panama's sovereignty over the world's second busiest waterway is not up for discussion.

Donald Trump is ramping up his anti-China rhetoric, accusing Panama of allowing Chinese influence over the Panama Canal.

Whether the U.S. or Panama own the Panama Canal, one of the largest routes for ship traffic in the world still faces horrible drought that will slow traffic through it, or shutter in completely from time to time.