Paraguay president reaffirms Taiwan ties during state visit as China pressure mounts
Primary region South America
Tags Diplomacy · Trade
Regions South America · China
Paraguay President Santiago Pena visited Taipei May 7-8, reaffirming diplomatic ties with Taiwan as China intensifies efforts to lure away the South American nation. Paraguay is Taiwan's last diplomatic ally in South America and one of 12 globally. Seven bilateral agreements were signed covering technology, cybersecurity, finance, and trade, including Taiwan's opening of its market to Paraguayan poultry. China's foreign ministry urged Paraguay to 'make the right choice' and sever ties. Pena condemned Chinese military pressure on Taiwan and described the island as a 'fundamental partner.' Internal debate continues in Paraguay over the economic costs of maintaining Taiwan relations versus potential benefits of recognizing Beijing.
Strategic interpretation
Paraguay's continued Taiwan recognition is increasingly costly as China courts Paraguayan lawmakers and the agricultural sector, which sees massive export potential in the Chinese market. The visit and new agreements represent Taiwan's strategy of deepening economic ties to make switching recognition more expensive. China's pressure campaign on Paraguay is part of a broader effort to complete Taiwan's diplomatic isolation.