Paraguay, Taiwan and China: A Close Look at a Diplomatic Crossroad

Paraguay remains the only South American country that has formal diplomatic relations with Taiwan, a partnership that began in 1957. That relationship has been important for public projects and diplomatic support. In recent months, China has stepped up engagement with Paraguay; Paraguayan lawmakers have been invited on expensive tours and have seen China's infrastructure and investment plans. These events have raised debate at home about trade and future opportunities.

President Santiago Peña and Paraguay's foreign ministry have affirmed that the country will preserve its relationship with Taiwan, saying they will defend the long-standing ties. While business leaders and some opposition politicians express interest in closer economic links with Beijing, the government emphasizes national sovereignty and strategic choices. Taiwan has also continued to work with Paraguay on development projects and diplomatic exchanges, making the relationship a visible part of Paraguay's foreign policy. The debate touches farmers and exporters who hope for larger markets, while civil society groups worry about influence and governance.