The president of the Federated States of Micronesia (FSM) has made an impassioned case for establishing diplomatic ties with Taiwan, whilst accusing China of political warfare in his country.
In a scathing 13-page letter to Congress, David Panuelo said China had committed espionage in FSM waters, bribed local politicians and attempted to undermine the nation's sovereignty.
He also levelled fierce criticism at China's newly appointed special envoy for Pacific Island countries, Qian Bo, accusing him of ordering intelligence officers to follow him around on a visit to Fiji last year.
"Simply put, we are witnessing political warfare in our country," Mr Panuelo said.
With just two months left in office after losing his seat in this week's general election, Mr Panuelo delivered a detailed case for severing diplomatic ties with China in favour of Taiwan.
He said the region needed to prepare for a potential Chinese invasion of Taiwan.
"We can play an essential role in preventing a war in our region; we can save the lives of our own Micronesian citizens; we can strengthen our sovereignty and independence," Mr Panuelo wrote.
"And we can do it while having our country at large benefit financially."
The president said he met with Taiwan's foreign minister, Joseph Wu, in February to discuss the diplomatic partnership.
"I was transparent with Foreign Minister Wu. We project we need an injection of approximately $50,000,000 to meet our future needs," he said.
Mr Panuelo said Taiwan had committed to the funding, as well as taking over any unfinished Chinese projects in FSM, including a national convention centre and government complex.
"We can and will receive this, over a three-year period, if and when we establish diplomatic relations with Taiwan," he said.
"All of this assistance, of course, would be on top of the greatly added layers of security and protection that come with our country distancing itself from the PRC [the People's Republic of China]."
Dr Anna Powles, a senior lecturer in Pacific security studies at Massey University, said the proposition would be of deep concern to Beijing.
"This would give Taiwan a boost, certainly, increasing their diplomatic allies in the Pacific from four to five," Dr Powles said.
A diplomatic switch would also have implications at a regional level, with China seeking some form of official recognition from the region's peak diplomatic body, the Pacific Islands Forum.
"Which the [Pacific Islands Forum] haven't been able and haven't been willing to do because not all of their members recognise China," Dr Powles said.
Dr Powles said losing an ally in the Pacific could undermine China's aspirations.
"They will be deeply concerned about any potential loss of recognition in the region," she said.
"All eyes are going to be on how Beijing responds."
The ABC has contacted the Chinese embassy in Canberra for comment.
Dr Powles said the PRC may threaten to impose economic and trade sanctions on FSM in response to the proposal.
"What we also may see is an increased step up in efforts to persuade individual FSM politicians, for example, to not support President Panuelo's proposition."
David Panuelo has been president since 2019 but lost his seat in Congress when FSM held its general election on Tuesday.
He accepted defeat and committed to a peaceful transition of power.
However, the Micronesian leader will remain president until May 11, when members of Congress vote for a new head of state, giving him time to initiate a diplomatic switch.
It is unclear whether that would give him enough time to initiate a diplomatic switch.
Dr Powles said David Panuelo had been vocal about his concerns relating to China in recent years.
Last year, Mr Panuelo asked Pacific nations to reject China's proposal for a region-wide trade and security deal.
"He has taken an increasingly proactive position with respect to concerns that he has in regard to Chinese engagement in the Pacific," Dr Powles said.
"This is obviously, you know, part of his political legacy as well."
