US secretary of state Marco Rubio demanded Panama immediately reduce “unacceptable” Chinese “influence and control” over the Panama Canal as scores of people in the Central American nation marched in protest against his visit.

In his first official trip as America’s top diplomat, Mr Rubio said in Panama that the US would act “to protect its rights” under a longstanding mutual treaty.

He held talks with president Jose Raul Mulino, who said Panama’s sovereignty over the canal was not up for debate but suggested he would review agreements involving Chinese businesses.

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The Panama Canal is the world's second busiest shipping route. Built by the US in the early 20th century, it was handed over to Panama in 1999 as agreed under a 1977 treaty. The Neutrality Treaty gives the US military the right to defend the canal if there is a threat to its neutrality.