Panama has officially informed Beijing of its decision to withdraw from China's massive infrastructure and investment project, the Belt and Road Initiative, the country's leader announced on Thursday.

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 is opposed to U.S. "smearing and sabotage" of the Belt and Road Initiative in Panama through "pressure and coercion", its foreign ministry said on Friday, after the South American nation decided to exit the programme.

Amid pressure from the US, Panama is first Latin American country to leave Beijing’s global infrastructure club.

Beijing ‘strongly opposes US' coercive pressure tactics aimed at smearing and undermining cooperation under BRI,’ says Foreign Ministry - Anadolu Ajansı

In a key concession to Washington, Panama President Jose Raul Mulino on Thursday (Feb 6) confirmed that Panama had pulled out of China's massive Belt and Road Initiative (BRI) infrastructure programme.

China firmly opposes U.S. "smearing and sabotage" of its Belt and Road Initiative through "means of pressure and coercion", a foreign ministry spokesperson said on Friday, when asked about Panama's decision to exit the programme.

In the wake of tensions with the United States over the Panama Canal, Panama is abandoning its participation in China's Belt and Road infrastructure development initiative, Panama's President José Raúl Mulino said on Thursday.

China says it "regrets" Panama's decision to pull out of the Belt and Road Initiative (BRI), accusing the United States of using "pressure and coercion to smear and undermine" the project, a massive infrastructure initiative aimed at expanding Beijing's clout overseas.