A Taiwan government committee has blocked the sale of a hotel in Palau owned by an opposition party, in a bid to preserve ties with the Pacific nation.
The Taipei Times reports a Kuomintang party investment vehicle owns a majority stake in the Palasia Hotel, and triggered a covert sale last month to raise campaign funds.
But Taiwan's Ill-gotten Party Assets Settlement Committee, charged with managing political assets, caught wind of it and sent a member to Palau to intervene.
The hotel is reportedly valued at more than $US8 million and the committee says its sale would be a blow to Taiwan-Palau relations.
Kuomintang chairman Wu Den-yih said the sale of the hotel is legal and should be allowed.
The party had previously tried to sell its 80 percent stake in Palasia in 2015 but could not find a buyer to match its terms.
Last year, the committee rejected an application by Kuomintang's to sell the hotel.