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 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.