What happens when a Pacific island up...

What happens when a Pacific island upsets China

KOROR, PALAU : Empty hotel rooms, idle tour boats and shuttered travel agencies reveal widening fissures in the tiny Pacific nation of Palau, which is caught in an escalating diplomatic tug-of-war between China and Taiwan. Late last year, China effectively banned tour groups to the idyllic tropical archipelago, branding it an illegal destination due to its lack of diplomatic status.

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