The Federated States of Micronesia (FSM) is a critical U.S. ally. It is one of three countries (along with Palau and Marshall Islands) that have signed Compacts of Free Association (COFAs) with the U.S. giving the U.S. extensive defense access, second only to what the U.S. has in the homeland. The COFAs forms the backbone of U.S. security architecture in the Central Pacific and facilitates U.S. freedom of deployment from Hawaii to the Philippines. FSM citizens can also live and work in the U.S. and serve in the U.S. military at high rates.

Given its geographical location and its importance to the U.S., the FSM is the target of unrelenting People’s Republic of China (PRC) political warfare and grey zone operations, with the goal of pulling the FSM away from the U.S. and into Beijing's orbit. For example, currently key components of the Compacts are awaiting renewal by Congress, giving an opening for PRC influence campaigns to foster uncertainty about U.S. commitment to the region.

Between 2022 and early 2023, then president of FSM, David W. Panuelo, wrote three letters describing in unprecedented detail for a head of state Chinese activity in his country and in the Pacific Islands area. He warned that not only were PRC activities corrupting the FSM and undermining democracy, they were an intrinsic part of Beijing Taiwan contingency planning.

To update on the situation in FSM since he left government, FDD’s China Program is pleased to host former President of Micronesia David W. Panuelo for a discussion with FDD Non-Resident Senior Fellow Cleo Paskal. The conversation will be moderated by FDD Senior Fellow Craig Singleton with remarks by FDD Adjunct Fellow Richard Clark.