Micronesia aims to ‘soon’ sign a 20-year extension of its defence and economic compact with the United States, its President David Panuelo said on Friday.

Micronesia is one of three pacific island states that has agreements known as compacts of free association with Washington, which allows the U.S. exclusive access to airspace and territorial waters in exchange for financial assistance.

The deals are seen as important in helping the United States counter growing Chinese influence in the region at a time of tension between the two superpowers.