A spokesperson for the State Department said that U.S. Secretary Marco Rubio informed Panamanian President Jose Raul Mulino during talks on Sunday that Donald Trump had determined that China's influence threatened the Panama Canal, and that urgent changes were required or the U.S. might act.

Panamanian officials have vehemently denied that they ceded the operation of the Canal to China, and maintain that the Panamanian government administers the Canal fairly for all shipping.

Although the canal is operated by Panama the two ports at either end are run by CK Hutchinson of Hong Kong, a publicly listed company. Other ports in the area are operated by companies from the United States and Singapore.

(source: Reuters)