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.

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.

Instead of direct confrontation, the US may target frameworks involving China, such as Brics, to preserve its global power, say analysts.