The US encourages “all countries to expand engagement with Taiwan,” a US Department of State official said on Saturday, after Palau’s president said that the Micronesian nation has faced economic coercion from China over its ties to Taiwan.

“Taiwan is a reliable, like-minded and democratic partner, and its partnerships — official and unofficial — around the world provide significant and sustainable benefits to the citizens of those countries,” a State Department spokesperson said. “We encourage all countries to expand engagement with Taiwan.”

Earlier this month, Washington condemned Beijing’s “predatory economic activities.”

Palauan President Surangel Whipps Jr on Aug. 14 said that “China has openly told us [Palau’s relationship with Taiwan] is illegal and we should not recognize Taiwan.”