FEATURE | Sex, drugs and a corpse in a suitcase: inside China's immoral but effective effort to undermine the US on Palau

Political influence

A tangled web of Chinese influence efforts and illicit activity emerges from the US intelligence reports and other documents reviewed by Reuters, and from interviews with local law enforcement officials.

Take Hokkons Baules, the president of the Palauan Senate, who has been one of the island’s most vociferous advocates for China. Under his leadership, the senate has passed resolutions criticizing US military activity in Palau, while he has personally advocated for expanded ties with China.

“We want to go with China, because we need a lot of help with infrastructure,” Baules told Reuters. He added that Palau should drop its recognition of Taiwan.

At the same time, Baules has allegedly built relationships with Chinese investors, including a man named Sun Maojin, who runs a technology company that lists state-controlled research centers and universities in China as partners on its website.

In November 2023, Sun flew to the island with several associates and $119,000 in cash, according to flight records, photos reviewed by Reuters, and three Palauan law enforcement officials. When Sun was questioned by customs officials for failing to disclose the money, Baules called one customs officer to ask for his release, according to the officials.

“These guys are my friends,” Baules allegedly said, and added that they were in Palau to lease land. The officials said Sun was released after paying a fine. Palau’s Land Court has no records of a transaction between Baules and Sun.