Whipps is calling for a unified stance in the region, stating that fellow island nations should not feel pressured by Beijing's increasingly aggressive posture towards Taipei.
He told Radio New Zealand's Pacific Waves program that boundaries in the Pacific neighbourhood must be respected in accordance with international norms.
"A Chinese ambassador asked us to have diplomatic relations with China and we said, 'we have no problem having diplomatic relations with China'. What we have a problem with is [China] telling us that we cannot have diplomatic relations with Taiwan," Whipps said.
"Now it seems tensions continue to rise, and we want to promote peace ... that is why it is important that we stand together," he said.
Palau is one of four Pacific island states that officially recognises Taiwan; the three others include the Marshall Islands, Nauru and Tuvalu.
He said it was concerning that more countries were severing ties with Taiwan, which "begins to signal that they are not a country", Radio New Zealand International reported.