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Palau’s President Surangel Whipps accuses China of pressuring the nation to cut ties with Taiwan through “weaponising tourism”
Palau is one of just 12 states worldwide that diplomatically recognise self-ruled Taiwan, which China considers part of its territory.
Solomon Islands, Kiribati and Nauru have all switched allegiance from Taiwan to China in recent years, and Palau President Surangel Whipps said China had put pressure on his tiny Pacific archipelago of 18,000 people to follow suit.
"We have a relationship with Taiwan... China has openly told us (that) is illegal and we should not recognise Taiwan," Mr. Whipps told reporters Wednesday.
Speaking during an official visit by New Zealand Foreign Minister Winston Peters, Mr. Whipps claimed China had told Palau that "'the sky is the limit, we can give you everything you need'".
"We need economic development, but at the same time we have values, we have partnerships, and the relationship we have with Taiwan, we treasure," he added.
"We're willing to be China's friend, but not at the expense of our relationship with Taiwan."