US and China in Geopolitical Tussle Over Tiny Pacific Island of Palau
A tiny island nation in the Pacific Ocean has become the latest staging ground for a major geopolitical tussle between the US and China. Palau, a collection of over 340 coral and volcanic islands, is geographically closer to China than any other Pacific Island nation and still formally recognises Taiwan.
According to a report by Reuters, which was covered by The Independent, Palau is on the front line of a battle for influence between China and the US. The island nation, which won independence in 1994 from the US-administered United Nations Trust Territory of the Pacific, is home to approximately 17,000 people.
Palau holds close ties to the US, with Washington providing aid and defense support to the island nation, while its citizens can live and work in the US. The island nation was one of the few countries spared Trump’s sweeping tariffs and plays host to American-controlled airstrips with a soon-to-be-completed long-range radar system that could become critical for keeping an eye on Chinese activities.
However, Reuters investigations have found evidence of a concerted influence campaign by individuals with ties to the Chinese government, aimed at preventing the US from expanding its military infrastructure on Palau. Joel Ehrendreich, the US ambassador to Palau, says China is using the same tactics in Palau that it has deployed elsewhere in the Pacific.
"We’ve seen the playbook over and over again throughout the region, and it’s been very effective," Ehrendreich said. "Get in with predatory investment, corrupt officials through elite capture, and try to destabilize the society through drug and human trafficking and other crime. And it’s easy to do when you go one by one through these little countries that you can overwhelm."
China has strongly pushed back on the claims, with a spokesperson for China’s foreign ministry telling Reuters that the claims that China is undermining Palau’s stability "are far-fetched, slanderous, and completely fabricated nonsense."
The strategic position of Palau puts it in a prime spot for a geopolitical tug-of-war, according to Dr Michael Green, chief executive officer at the United States Studies Centre in Sydney. "These small islands that few people know about suddenly become the objects of major strategic competition," he told the Guardian last November.
The Trump administration is no stranger to attempting to exert influence on islands while competing with rival powers – Greenland has famously been in the US president’s crosshairs since he returned to power in November. In March, China touted efforts to deepen co-operation between Beijing and Greenland despite Trump’s bluster.
According to Reuters, Chinese efforts to influence the future of Palau run deep. The news agency has reviewed intelligence reports, police files, court records, and land filings, and conducted interviews with more than 20 diplomats and local law enforcement officials as part of its investigation.
US intelligence reports state that people from China allegedly linked to illicit activity—including drug smuggling and prostitution—are attempting to foster relationships with senior Palau officials. They have been accused of making donations to court the island’s political figures and attempting to facilitate meetings between Chinese and Palauan officials.
Tamara Hutzler, Palau’s anti-corruption prosecutor, said political donations by foreign nationals are illegal in Palau. "The only evidence my office has received is via anonymous sources," she said. "Everyone knows foreigners give money, but without evidence our hands are tied."
The corruption is just pervasive, added Hutzler. It is tough to combat, she said, in part because law enforcement lacked resources. Meanwhile, Chinese businesspeople have leased land near some of the US military facilities, including radar stations and airstrips, according to land records. Foreign nationals cannot purchase land in Palau, but they can lease it for decades-long periods.
Ehrendreich believes the leases were almost certainly strategic. "All around there are various plots of land that are now being leased to Chinese interests," the ambassador said. "I don’t think it’s any coincidence at all that it happens to be physically close to our projects."
The land-lease tactic, he said, was "how they maybe are able to keep an eye on what we’re trying to do here." Palau president Surangel Samuel Whipps Jr has expressed support for the US, inviting Donald Trump to go snorkeling with him to highlight the climate change challenges Palau faces.
"What Palau sees as important is a strong United States that’s able to continue to be strong, is good for Palau and good for the planet," Whipps Jr said earlier this month. The Palau president did not respond to a Reuters request for comment on the allegations of Chinese influence.
The tiny island nation’s situation highlights the growing competition between the US and China in the Pacific region. As the geopolitical tussle continues, Palau finds itself at the centre of a battle for influence that could have far-reaching consequences for the island nation and the wider region.
According to The Independent, which originally reported on this issue, experts warn that the influence of China in the region could undermine the stability of Palau and other Pacific Island nations. The situation in Palau serves as a microcosm for the larger geopolitical struggle between the US and China, with the island nation caught in the middle.
In conclusion, the situation in Palau highlights the growing tensions between the US and China in the Pacific region. As the two superpowers compete for influence, small island nations like Palau are finding themselves caught in the middle. The allegations of Chinese influence in Palau, as reported by Reuters and covered by The Independent, serve as a reminder of the complex geopolitics at play in the region.
