Palau-Taiwan ties grow stronger in the face of China's mounting pressure

Palau President Surangel Whipps Jr. and Taiwan President Lai Ching-Te. Photo courtesy of MOFA

By Mar-Vic Cagurangan

Palau’s outsized strategic value in the region has made it a target of China’s relentless influence-peddling. Using carrot and stick, Beijing has repeatedly tried to snatch Palau away from Taiwan. But each of China’s attempts to crush the Palau-Taiwan relations only proves the strength of their diplomatic alliance.

Palau President Surangel S. Whipps Jr. likened Palau’s 26-year ties with Taiwan to a “marriage” that is based on "shared values, such as freedom and democracy, a common Austronesian culture, and mutual support and prosperity.”

Amid Taiwan's shrinking diplomatic map, Palau remains one of its three remaining allies in the Pacific region, alongside the Marshall Islands and Tuvalu.

"In today’s world, where peace is often challenged and freedom tested, it is heartening to know that there are those who stand firm—not for aggression, but for stability; not for power, but for principle," Whipps said during a welcome ceremony in Taipei, where he received a 21-gun salute and red-carpet treatment on May 20.

Surangel’s trip coincided with the World Health Assembly meeting in Geneva, Switzerland, where Palau endorsed Taiwan’s participation. Despite the WHA’s rejection of Taiwan’s bid, Palau’s support was not lost on President Lai Ching-te.

"Palau has never stopped voicing support for Taiwan in the United Nations General Assembly, the World Health Organization and other U.N.-affiliated agencies. We have been profoundly touched by these endorsements,” the Taiwanese president said during his meeting with Whipps.

Lin Chia-lung, Taiwan’s foreign minister, said he expects Taiwan and Palau to "continue their close cooperation" and jointly "promote sustainable development across a range of areas in both nations."

Leading an industrial delegation to Palau in January, Lin said Taiwan had laid the groundwork for utilizing public-private partnerships as a cooperative model to promote the Ministry of Foreign Affairs' Diplomatic Allies Prosperity Project.

In a briefing with an international media delegation in Taipei on May 20, François Chihchung Wu, deputy foreign minister, said Taiwan assists Palau in other areas, such as tourism.

“We established a direct flight from Taipei to Palau. Even though Palau is not a very big country, we try to send more tourists there,” Wu said. “We’re trying to work more with Palau to have better relations in every domain in a general way.”

Palau’s loyalty to Taiwan has been tested several times. It has repeatedly resisted Beijing’s pressure to switch sides, despite Beijing’s 2018 move to restrict tourism from China to Palau, resulting in a significant decline in Chinese arrivals to the Pacific island nation.

China has since tried to reenter the Palau market in a rogue manner. In a recent report, Reuters disclosed intelligence and police files indicating China’s attempt to interfere with Palau’s elections. The report said some Chinese individuals with ties to the communist government have cultivated close ties and made campaign donations to senior political figures in Palau.

With a population of 17,700, Palau is freely associated with the United States under the Compact of Free Association and is strategically important to U.S. homeland security. The compact grants the U.S. exclusive rights to Palau’s defense. The U.S. military is building a tactical mobile over-the-horizon radar in the island nation. The $118 million project is expected to be operational by 2026. 

Taiwan Foreign Minister Lin Chia-Lung holds a press conference with international press delegations in Taipei on May 21, 2025. Photo by Mar-Vic Cagurangan

Taiwan, on the other hand, “does have a geopolitical ambition” in Palau, Wu said. “We are trying to make our two societies feel close together, not only among the leaders,” he said. “We’re hoping that these very close relations between the two societies will be sustainable and not only influenced by the superpowers.”

Whipps, who led a large delegation in Taipei, concluded his tour on May 24, after signing bilateral agreements on technical cooperation and diplomatic staff training and cooperation.

“The tour reflected Taiwan’s continuing efforts to strengthen the resilience of Palau’s tourism-centered economy through integrated diplomacy and demonstrated the substantive success of bilateral collaboration,” states a press release from the Ministry of Foreign Affairs.

The foreign affairs office said it “will continue to uphold the close and cordial cooperative partnership between the two countries, promote the Diplomatic Allies Prosperity Project, and deepen bilateral relations. It will also work with Palau to advance peace, stability and prosperity in the Indo-Pacific.”

At the press briefing with foreign media, Wu said Taiwan hopes to be an integral part of the Pacific island community.

“Several years ago, we seemed to be able to do that still, but now it's more difficult for us because now we only have three countries in the Pacific island region that formally recognize us,” Wu said.  “We continue to seek some dialogues with strong islands, but it seems not easy because influence from China is getting stronger and stronger.”

He said Taiwan would be willing to reestablish relations with its former allies in the Pacific island region, but it would not succumb to extortion.

“Certainly, Taiwan now has a way to reestablish those countries that abandoned Taiwan, but we don't have unlimited resources. People who want to reestablish relations with Taiwan should understand that,” Wu said. “If it is only a demand of the leadership to try to get Taiwan to pay some people, it would be very disappointing for us, especially now that our National Assembly is very tough.”

Taiwan has lost three Pacific island nations to China in recent years, leaving it with only 12 allies. The Solomon Islands and Kiribati switched back to Beijing in 2019, and Nauru followed suit last year.

Taiwan terminated its bilateral projects in Nauru following its diplomatic turnaround, which resulted from the Taiwanese government’s refusal to yield to Nauru leaders' demand for it to match Beijing’s offer. 

Wu said Taiwan would not succumb to such a diplomatic ploy.

“Taiwan was an undeveloped country in the past. Now it has become a developed country and we do have to obtain also the support of countries like Australia, New Zealand and other advanced countries for our security,” he said. “It means that our government needs to function in a modern way.”

Wu said Taiwan hopes to be treated “normally” and “considered as a Pacific island nation.”

“We do believe that we can contribute because the prosperity of Taiwan is based on a lot of technology. It's not only cheap technology but also for the daily economic activities that we are doing. What makes Taiwan prosperous is not only the semiconductor industry but also our maritime industry,” Wu said.

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