China is waging 'political warfare' in the Pacific, says president of Micronesia

China is engaged in "political warfare" in the Pacific, the outgoing president of Micronesia has alleged in an excoriating letter accusing Beijing of bribing elected officials and "direct threats against my personal safety".

- Ben Doherty and Kate Lyons

Two months before his term ends, David Panuelo's letter alleged China was preparing for conflict over Taiwan, and that its goal in interfering in the Federated States of Micronesia (FSM) was to render the country neutral in any potential Pacific war.

"China is seeking to ensure that in the event of a war between themselves and Taiwan, the FSM is at best aligned with the PRC [People's Republic of China] instead of the US and at worst that the FSM chooses to abstain altogether."

The revelations come as Beijing seeks to ramp up efforts to exert influence in the Indo-Pacific region, creating an increasingly fast-paced tug-of-war battle with the US and its ally Australia.

Last year Beijing signed a controversial security pact with Solomon Islands, which, along with Kiribati, made a decision to break ties with Taipei in favour of Beijing in 2019.

In response, Australia has launched high-profile visits to Pacific states, while the US president, Joe Biden, invited leaders to a US-Pacific summit in September, the first event of its kind. Washington has also rushed to reopen embassies in Pacific nations that had been closed for decades.

The FSM is a longstanding ally of the US the countries have a formal "compact of free association" - and the US is wholly responsible for the FSM's defence.

In his letter to the FSM's congress and state governors, Panuelo also openly suggested switching the country's diplomatic recognition from Beijing to Taipei, even naming a price to do so: $50m (£42m).