China has donated $US2 million to the Federated States of Micronesia's (FSM) trust fund after a request from the country's leader.
President David Panuelo received the donation during a meeting this week with a special envoy of his Chinese counterpart, Xi Jinping.
A release from Micronesia's government quotes the envoy, Yang Chuantang, saying the cash grant was unusual because China usually invests in infrastructure.
"China is ready to work with the FSM to strengthen our cooperation and push for more growth for our strategic relationship," he was quoted as saying.
The trust fund's balance sits at $US636 million, according to the latest available figures from 2018.
Mr Panuelo, who was sworn into office in May, asked China to make contributions to its trust fund in June, during a meeting with its ambassador to FSM, Huang Zheng.
On Monday, Mr Panuelo said that China was assisting his country with many infrastructure projects, including a college gymnasium, a government complex in Chuuk state and roads and bridges in the capital Pohnpei.
China and FSM will celebrate 30 years of diplomatic relations on 11 September.