Palau: A Tiny Nation Caught in Global Power Struggles

Mon Nov 24 2025 08:11:22 GMT+0200 (Eastern European Standard Time)

Explore how Palau, a small Pacific island nation, navigates its delicate position between China and the US amidst rising geopolitical tensions.

Palau, a small island nation in the Pacific, finds itself at the center of geopolitical tensions between the US and China. As the US strengthens its military presence through infrastructure projects, China allegedly leverages tourism to exert influence. Palau's recognition of Taiwan as a sovereign state complicates its international relations, leading to economic challenges and environmental concerns. Local leaders express fears over these external pressures, as Palauans cope with the implications of their unique location on the global stage.

The air above Palau's pristine waters smells of salt and breadfruit, with the whirr of dive boat engines echoing across the bay in Koror. Once filled with tourists from China, those boats now remain idle following a sharp decline in visits after 2017, when Beijing reportedly halted tour operations to the islands, showcasing the impact of geopolitical maneuvers.

Palau is one of the few nations still recognizing Taiwan, which has turned it into a focal point of Chinese influence efforts. Local officials allege that China has utilized its tourism to pressure Palau into severing ties with Taiwan, promoting their political objectives. In response to these pressures, Palau maintains a close relationship with the US, which is bolstering military infrastructure on the island, aiming to counter Chinese expansion in the Pacific.

Palau faces a challenging balance as Chinese investments and military expansion converge on its shores, sparking concern among local leaders about sovereignty and the potential for conflict. As Palau navigates the complex dynamics of US military presence and Chinese influence, the voices of its inhabitants echo the anxieties of a nation caught between great powers.