U.S. encourages engagement with Taiwan after China's Palau coercion

Washington, Aug. 24 (CNA) A U.S. State Department official said Saturday that the United States encourages "all countries to expand engagement with Taiwan," after Palau's president recently warned that the Micronesian nation has faced economic coercion from China over its ties to Taiwan.

"Taiwan is a reliable, likeminded, and democratic partner, and its partnerships -- official and unofficial -- around the world provide significant and sustainable benefits to the citizens of those countries," a State Department spokesperson told CNA.

"We encourage all countries to expand engagement with Taiwan," the spokesperson added.

Earlier this month, Washington had condemned Beijing's "predatory economic activities."

Speaking to reporters during an official visit by New Zealand Deputy Prime Minister and Minister of Foreign Affairs Winston Peters on Aug. 14, Palau President Surangel Whipps Jr. said that "China has openly told us [Palau's relationship with Taiwan] is illegal and we should not recognize Taiwan."

Whipps cited reduced visitor numbers from the People's Republic of China (PRC) as evidence of economic coercion aimed at encouraging Palau to sever its formal diplomatic ties with Taiwan.

Whipps told the Associated Press in an interview that the Chinese ambassador stationed in a neighboring country had promised in 2020 to send a million Chinese visitors to Palau if the tourism-dependent country severed ties with Taiwan and established ties with China.

Despite this "weaponization" of tourism, the Palau president reaffirmed his country's commitment to Taiwan, telling reporters that "our relationship with Taiwan should not be questioned by anyone."

In response to Whipps' comments, the U.S. Department of State said on Aug. 16 that Washington is "aware of reported previous attempts to economically pressure Palau, likely due to its diplomatic ties with Taiwan."

"These reports align with a range of alleged increasingly problematic behavior from the PRC, including predatory economic activities," the U.S. State Department press office said.

In accordance with its so-called "One China" principle, the PRC does not recognize any country that has formal diplomatic ties with Taiwan, which Beijing plans to annex into PRC territory.

Since establishing formal relations with Taiwan in 1999, Palau -- a small nation in Micronesia with a population of less than 20,000 -- has resisted China's diplomatic overtures.

Earlier this year, Whipps congratulated then-President-elect Lai Ching-te (賴清德) on his Jan. 13 election victory, saying that bilateral ties between Palau and Taiwan remained "robust."