China has labeled Palau an "unsafe" travel destination in retaliation for a Taiwanese ministerial visit, a direct hit to a small island economy that depends on Chinese tourists.

• Pacific leaders gather in Palau this week for the Pacific Islands Forum summit, with drugs, climate change, food security and clean energy on the agenda.
• China moved against Palau after Taiwan's foreign minister visited, warning its citizens away from one of Taiwan's three remaining Pacific allies.
• Beijing is the main creditor to many island states and protested loudly against Taiwan being invited as an aid partner.
• Palau's president says the Pacific is a home, not a stage for big-power rivalry, and wants the focus kept on local problems.
• Drug gangs are building smuggling routes across the Pacific, with cocaine and meth seizures in Fiji and an abandoned drug submarine found in the Solomon Islands.

Outlook: The Taiwan-China fight looks set to overshadow the summit, and leaders are still split over whether to condemn China's recent missile test.