American's Pacific Island Allies: The Freely Associated States and Chinese Influence

Located north and northeast of Australia and east of the Philippines, the Freely Associated States (FAS)comprising the independent countries of the Republic of Palau, the Federated States of Micronesia (FSM), and the Republic of the Marshall Islands (RMI)occupy an ocean area roughly the size of the continental United States. Their location contains sea lines of communication linking U.S. military forces to Australia and Guam, and Guam to the Philippines. These strategic advantages have made the region particularly attractive to China, which has recently been attempting to expand its influence in this areaa development that could have significant implications for U.S. national interests in the region. The purpose of this report is to explain the importance of the FAS in U.S. defense and foreign policy, describe Chinas growing influence in the FAS, analyze how other countries in the region are responding, and assess the implications for the United States.