This thesis is about the challenging and favorable circumstance in FSMs relations with China and USA.The thesis examines FSMs relations with the two great powers,Chinas Interests and USAs interests in USA, and the consequences from those interests.The FSM cunently has both great advantages and great disadvantages in its relations with USA and China．On the one hand，the FSM is located in a location that is of great strategic advantage for the security interests in the maritime domain for both China and USA．On the otheg FSMS geographic location constantly cripples its economy because of how far FSM is from the maj or markets in the world，resulting in higher prices despite FSMS purchasing power being one of the lowest for a state in the world．The FSMS relationship with China and USA are both beneficial because of the amount of aid FSM receives from both countries．The disadvantage is the to these relationships is the tensions that have risen between the countries as ChinaS influence in FSM has increased over the years．The research question is how do USA interests and Chinese interests impact FSM.