It’s not just Greenland: Inside the fight the U.S. faces to keep a tiny Pacific island out of China’s grasp
A tiny island nation in the middle of the Pacific Ocean is the staging ground of a major geopolitical tussle.
Palau is made up of more than 340 coral and volcanic islands perched on the Kyushu-Palau Ridge, dotting Micronesia’s edge. It is geographically closer to China than any other Pacific Island nation and still formally recognizes Taiwan.
And now it is on the front line of a battle for influence, with China on one side and the U.S. on the other.
The former colony, which won independence in 1994 from the U.S.-administered United Nations Trust Territory of the Pacific, is home to approximately 17,000 people.
It holds close ties to the United States, with Washington providing aid and defense support to Palau while its citizens can live and work in the U.S.
It was one of the few countries spared Trump’s sweeping tariffs. And it 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.
But Reuters says its investigations have found evidence of a concerted influence campaign by individuals with ties to the Chinese government, aimed at preventing the U.S. from expanding its military infrastructure on Palau.
Joel Ehrendreich, the U.S. 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.
Palau’s strategic position puts it in a prime spot for a geopolitical tug-of-war, chief executive officer at the United States Studies Centre in Sydney Dr Michael Green explained. “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 U.S. 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.
Reuters now claims that 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.
U.S. 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.
