Pacific Diplomacy Under Strain: China warned of “consequences” after Taiwan’s foreign minister attended the Pacific Islands Forum opening ceremony in Palau, as Beijing’s envoy complained Taiwan isn’t a dialogue partner and urged the issue be raised with forum dialogue partners. Regional Unity vs Great-Power Pressure: Multiple leaders reportedly skipped the summit amid suspicions of foreign interference, while Australia and New Zealand pushed back on any outside influence over who attends. Solomon Islands at the Forum: Solomon Islands handed over the PIF chairmanship to Palau, with Foreign Affairs Minister Rick Houenipwela stressing shared responsibility for the 2050 strategy. Domestic Politics Spillover: Prime Minister Matthew Wale’s early return from Palau to face a no-confidence motion drew sharp criticism from the Opposition and NZ’s Winston Peters, who called it a “setback” for the meeting. VAT and Tax Reform: Finance Minister Gordon Darcy Lilo opened consultations on the 2026–2028 tax work programme, reiterating VAT is settled and urging businesses to prepare now for registration, invoicing, record-keeping and input tax credits. Energy and Services: Solomon Islands met the World Bank on energy security and lowering electricity costs, while UNICEF and partners delivered solar power to seven rural health facilities in Malaita. Private Sector Finance: SICCI welcomed the relaunch of the SME Credit Guarantee Scheme as a key step to unlock local business lending. Development Deliveries: Shortland Islands received a $1.5m China-funded RSDP fishing package, and Japan reaffirmed cooperation with Solomon Islands on education, infrastructure, aviation and sports.