One of the few remaining nations to recognise Taiwan's claim to statehood, Palau has repeatedly risked Beijing's ire over the years by refusing to reverse its stance.

"China has one goal, and that is for us to renounce Taiwan," Whipps said during a speech at an Australian think tank on Thursday.

"But we hope that they understand -- that decision is a sovereign decision and no country tells us who we should be friends with.

"We kind of believe in that principle, that when you're married, you're married until death do us part."

The Palauan archipelago -- a string of limestone islands and coral atolls -- lies about 800 kilometres (500 miles) east of the Philippines.

Whipps has overseen the expansion of US military interests since winning power in 2020.

This has included the ongoing construction of a long-range US radar outpost, a crucial early warning system as China ramps up military activity in the Taiwan Strait.

Palau also plans to dredge sections of its commercial port, making it deeper to allow more visits from US Navy ships.

This risked painting a target on Palau's back, Whipps said on Thursday.

"Yes, there is concern that now we become a target," he told Australia's Lowy Institute.

"I think that's why it's important that the ports and the airports are upgraded so that we are ready to be protected if a conflict does arise.

"Because of our location, no matter what, we're going to be a target for somebody."

While Taiwan sees itself as sovereign, most nations, including the United States, do not recognise its claim to statehood and instead have formal diplomatic ties with China.