Paraguay Signals China Trade Interest, Reaffirms Taiwan Support

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Asuncion: Paraguay has expressed its willingness to boost trade ties with China, but has made it clear that any economic collaboration will not compromise the country's long-standing diplomatic connection with Taiwan. Paraguay's President Santiago Peña stated that the country is open to pursuing commercial potential with Beijing, as long as it does not require severing official ties with Taiwan.

Paraguay is the only South American country that formally acknowledges Taiwan, and it is one of only a few countries throughout the world that retain diplomatic relations with the self-governing island. China, which considers Taiwan part of its territory, demands countries wanting formal diplomatic connections with Beijing to acknowledge the ‘One China’ policy and terminate official relations with Taipei.

The remarks coincide with mounting pressure on Paraguay from domestic business organisations, especially agricultural exporters, who contend that developing closer ties with China might provide access to one of the biggest consumer marketplaces in the world. Still, the government of Paraguay has emphasised that its alliance with Taiwan continues to be a pillar of its foreign policy.

Taiwan has long offered investments, development support, and collaboration in areas including infrastructure, healthcare, and education to Paraguay. Paraguayan officials said they believe it is possible to strengthen trade with China without compromising their diplomatic commitment to Taiwan, although Beijing has traditionally rejected such an arrangement.