A spokesman for Palau's President is rejecting media reports that Chinese investment has dried up as a result of Palau granting asylum to six former Guantanamo detainees from the Chinese Muslim Uighur minority.
The president of Palau, Johnson Toribiong, was quoted telling a US Senate sub-committee that the Chinese investor building a five-star hotel in Palau was no longer able to get money out of China.
But his press secretary Firman Meriant says while construction on the hotel did come to a halt when the Uighurs arrived in 2009, it re-commenced a few months ago.
He says he's unaware of any problems with Chinese investments and says the hotel project will be completed.