PANAMA CITY, Feb 2 (Reuters) - U.S. Secretary of State

Marco Rubio told Panamanian President Jose Raul Mulino in talks

on Sunday that President Donald Trump has determined China's

influence threatens the Panama Canal and that immediate changes

were needed or the U.S. would act, a State Department

spokesperson said.

The Panamanian government has vehemently denied ceding

operation of the canal to China and insists it administers the

canal fairly to all shipping.

Though the canal itself is operated by Panama, the two ports

on either side are run by publicly listed Hong Kong company CK

Hutchinson, while other ports nearby are operated by

private companies from the United States, Singapore and Taiwan.