Palau and the Marshall Islands, along with the Federated States of Micronesia, make up the Freely Associated States, which rely on U.S. security guarantees and economic assistance in exchange for military access to their territory. These nations sit along the so-called second island chain, which the Pentagon considers central to containing Chinese forces in a potential conflict.
U.S. officials worry expanding Chinese infrastructure investments in the South Pacific could weaken long‑standing American advantages in the strategic region.
