May 25, 2017 (Ngerulmud, Palau) A Senate Resolution 10-11 introduced by Senate President Hokkons Baules calls for establishing direct trade agreement between Palau and the People’s Republic of China.


The resolution cites that People’s Republic of China is greatly populous, with vast natural resources, advanced technology and many cheaper products that can greatly benefit Palau.

In recent months, there have been travels to China by many of Palau’s sitting Senators and Delegates as well as local businessmen.

Palau does not have diplomatic ties with mainland China and despite that, more companies from mainland China have already invested in Palau including hotels and real estate.

Palau made a decision in 1999 under Nakamura’s administration to establish diplomatic ties with Republic of China Taiwan and have enjoyed a  strong diplomatic ties with ROC.

President Remengesau in his previous interview stated that Palau is enemy to no one and “our relationship with Republic of China Taiwan does not stop us from talking with mainland China about economic investments or other areas of cooperation.” [/restrict]