In recent years, President Surangel Whipps Jr. of the Pacific island nation of Palau has expressed anger over the influx of large quantities of illegal drugs brought to the island by Chinese individuals, posing a serious threat to the country’s governance and social stability.
Palau, located east of the Philippines and north of Indonesia, with a population of only 18,000 people, has only one prison that can hold a maximum of 65 inmates. However, according to a Facebook announcement by the Palau Ministry of Justice, as of the end of September this year, the prison population has reached 113, far exceeding its designed capacity, with 13 Chinese prisoners accounting for 11.5% of the total incarcerated population.
Data also indicates that from July to October last year, a total of 6 Chinese individuals were sentenced for trafficking, possession, or attempted smuggling of illegal drugs on the island.
During the Pacific Islands Forum Leaders Meeting held in late August to early September this year, Whipps told reporters from Nikkei Asia that the drug problem on the island is increasingly severe, especially the rampant smuggling of methamphetamine, leading to overcrowding in prisons, which has further exacerbated the situation, leaving him deeply frustrated.
Palau is one of the few countries maintaining diplomatic relations with Taiwan, and Whipps has criticized the Chinese Communist Party (CCP) on multiple occasions. In 2024, he publicly accused the CCP of being the mastermind behind cyberattacks launched against Palau.
While Whipps has not directly accused the Chinese authorities of being directly involved in the drug issue, he stated in an interview with Nikkei Asia that Chinese individuals bring drugs to the island with the aim of making money and weakening the government and social structure of Palau.
Last May, a Chinese man was sentenced to 25 years in prison by a court in the Northern Mariana Islands for a methamphetamine case that spanned Saipan, Guam, and Palau. The man fled to Palau and was later extradited after being convicted of involuntary manslaughter for killing another Chinese individual.
This case underscores the transnational nature of drug crimes, and Pacific nations must enhance cooperation, strengthen information sharing, and block these “criminals” at the borders to prevent these troublemakers from destroying the younger generation and destabilizing the country.
Many Pacific countries are also plagued by drug problems for various reasons. Leaders from these countries are aware of the issue and unanimously expressed in a communique issued at the Pacific Islands Forum Leaders Meeting last month that they will strengthen intelligence sharing, coordinate actions, and enhance maritime security cooperation to combat transnational organized crime and illegal drug trafficking.
David Manning, the Police Commissioner of Papua New Guinea, told Nikkei Asia that a majority of the methamphetamine and precursor chemicals seized locally originate from Asia, but the vast majority of illegal drugs seized come from Central and South America, mainly cocaine.
The route is known as the “Pacific drug corridor,” where drug traffickers transport drugs using yachts and semi-submersible vessels, targeting lucrative markets in Australia and New Zealand. The Australian Federal Police announced in May that a total of 17 tons of illegal drugs, mostly cocaine, were seized in the Pacific region from January to May, significantly higher compared to the 4.6 tons seized throughout the previous year.
Fiji, among other smaller Pacific nations, is particularly vulnerable along this route. While Fiji was previously just a transit point for drug trafficking, drugs are now beginning to flow into the streets. Data from the Fiji Police Department shows that within a year ending in May 2025, there were a total of 2,446 cases related to illegal drugs, with 50 involving minors.
With a significant increase in methamphetamine injection and the proliferation of needle sharing, Fiji faces a worsening public health crisis. The United Nations Programme on HIV/AIDS (UNAIDS) estimates that since 2010, there has been a more than 3,000% increase in new HIV infections in Fiji.
Fiji currently has the world’s fastest-growing HIV epidemic. The Ministry of Health of Fiji declared a national emergency for the HIV epidemic in September this year, stating that one in every 60 adults is infected with HIV.
Palau’s Minister of Justice, Jennifer Olegeriil, believes that Palau may face a similar situation in the next 5 to 10 years if immediate action is not taken seriously. According to Virginia Comolli, the Pacific Project Director at the Global Initiative Against Transnational Organized Crime, Palau’s proximity to Asia and limited law enforcement, border control, and regulatory capabilities are exploited by some transnational criminal networks, especially Chinese criminal syndicates.
The Palau Special Prosecutor’s Office reported that in 2020, local law enforcement raided a hotel operated by a Chinese national and discovered the operator running an underground online gambling operation without paying taxes. Subsequently, 57 Chinese citizens were convicted and deported.
Similar incidents have since followed. A report from the National Security Coordination Office (NSCO) of Palau in 2025 revealed that in January 2025, police raids on a hotel revealed 9 Chinese citizens operating online gambling and fraud businesses, all of whom were later deported.
Comolli told Nikkei Asia that there are also numerous Chinese criminal syndicates or crime networks operating in Southeast Asian countries but the infiltration of such a large Chinese criminal network into Palau, with its small population and limited institutional capacity, is somewhat surprising.
John Hennessey-Niland, the former U.S. Ambassador to Palau, stated that Palau has seen a long history of active Chinese criminal organizations, particularly rampant cybercrime, posing a real threat to the local population, law enforcement, and social stability.
Criminals may perceive Palau as a crime haven where Chinese authorities have no reach due to the lack of diplomatic relations with China, according to Niland.
Olegeriil acknowledged she knows where the drugs are coming from but did not disclose specific sources. She mentioned that smugglers bring drugs through various methods such as luggage, personal belongings, mail packages, secret drops on outer islands, and commercial cargo containers.
Graeme Smith, a Senior Research Fellow at the Australian National University’s Department of Pacific Affairs, pointed out that another reason Chinese criminals target Palau is the relaxed immigration controls, as many Pacific nations heavily rely on tourism and Chinese visitors, facing similar issues.
Palau Immigration data shows that in the first 8 months of this year, China was the largest single source of tourists to Palau, with 20,792 Chinese visitors, accounting for over a third of the total international visitors.
Palau has also engaged in cooperation with China. According to a report from the National Security Coordination Office in 2025, intelligence shared with Macau led to the discovery of a cross-border drug trafficking ring, resulting in the subsequent arrest of suspects by Hong Kong and Macau authorities, successfully preventing 3.4 kilograms of methamphetamine from entering Palau.
However, Comolli noted that while data shows an increasing Chinese influence in Palau’s methamphetamine smuggling crimes since 2024, the Philippines, the U.S., and Guam remain the main sources of drugs.
Olegeriil stated that illegal drugs are increasingly infiltrating Palauan society, with the consumer base expanding continuously. Drug traffickers are splitting drugs into smaller quantities, making them cheaper and more accessible.
Nancy Wong, a member of the well-known Palauan women’s group Mechesil Belau, told Nikkei Asia that drug addiction on the island is worsening, leading to decreased productivity, increased theft and robbery cases, and the breakdown of many families.
In January this year, President Whipps declared 2026 as the “Year to Eradicate Drugs” and established a National Task Force in February to coordinate unified actions among various stakeholders. In May, he signed a bill to expand drug testing scope and increase penalties for serious drug-related crimes.
Additionally, Palau has enhanced border security, including the purchase of airport X-ray inspection equipment and stationed drug enforcement personnel at post offices. In June this year, Japan provided Palau with new drug detection equipment to enhance the customs inspection capability at entry ports. The U.S. also provided Palau with drug detection dogs.
Olegeriil emphasized that these measures are to signal to the world that Palau is a rule of law country and will not tolerate the influx of drugs brought by foreign forces and the destruction of communities, committing to pursuing these issues to the end.
However, she pointed out that solely relying on drug testing and interception is insufficient to solve the problem. The government and society must take comprehensive and participatory measures, including strengthening drug education in schools, conducting drug rehabilitation and psychological counseling programs in hospitals. Earlier this year, Taiwan provided funding to 31 community organizations supporting anti-drug work and became a partner of Palau.
Wong noted that Palau, being a small nation, can indeed control and even eradicate the drug problem with collective efforts.