TAIPEI (Taiwan News) — Palau, one of Taiwan's remaining diplomatic allies, will hold elections on Tuesday (Nov. 5).

The election comes amid rising tensions between the US and China, with Palau serving as a key ally for Washington in the Pacific. The election outcome could influence US security strategy in the region, while China continues to pressure the Pacific island nation to cut ties with Taiwan.

Incumbent President Surangel Whipps Jr. is running against former President Tommy Remengesau. On Monday, Remengesau was seen campaigning at an intersection, seeking support from drivers, per Reuters.

In addition to the presidential race, voters will elect 13 members of Palau’s senate.

In February, Whipps sent a letter to a US senator, alleging that China offered to fill Palau's hotels with Chinese tourists and provide US$20 million (NT$640 million) a year for a "call center" if Palau would drop its diplomatic relations with Taiwan. The letter, dated Feb. 9, requested the senator’s support in passing an amendment to fund renewed Compacts of Free Association (COFA) treaties between the US, Palau, Micronesia, and the Marshall Islands as a counterbalance to China.

Palau renewed its COFA with Washington in March, per Pacific Island Times. Under the agreement, Palau will receive $890 million in economic aid over the next 20 years in exchange for allowing US military forces to maintain their presence in its waters, airspace, and land.

With a population of 18,000, Palau is strategically located between the Philippines and the US military base in Guam. The US is currently building an over-the-horizon radar station in Palau, scheduled for completion in 2026.

Palau is one of Taiwan’s 12 remaining diplomatic allies. Whipps has stated that Beijing’s ban on tourist groups visiting Palau and a cyberattack in March show China’s attempts to pressure the country to sever ties with Taiwan.

The Palau Senate has rejected a proposal by Whipps for the US to establish a long-term Patriot missile defense system on the archipelago, shelving the government’s request.

During his campaign, Remengesau emphasized the need to “ensure that foreign influences do not overshadow our identity or compromise our independence,” according to Reuters. His campaign team did not respond to inquiries about the specific foreign influence he referenced.

In September, Taiwan and Palau signed an agreement to promote Taiwanese tourism and investment in Palau. In October, Foreign Minister Lin Chia-lung (林佳龍) organized a business seminar that attracted 30 representatives from various sectors, including travel, food processing, bakery, precision machinery, construction, and import-export, to explore investment opportunities in Palau.