World March 14, 2026

China Steps Up Overtures to Paraguayan Lawmakers as Taipei Remains Last South American Ally

Luxury tours, technology showcases and promises of market access are reshaping debates in Asuncion over whether Paraguay should maintain ties with Taiwan or shift recognition to Beijing

By Sofia Navarro
China Steps Up Overtures to Paraguayan Lawmakers as Taipei Remains Last South American Ally

Chinese-organized visits for Paraguayan politicians, journalists and other influencers have intensified since late 2023, offering lavish hospitality and curated tours of hospitals, manufacturing centers and high-speed rail to promote closer ties with Beijing. The outreach aims to persuade Paraguay - Taiwan's last diplomatic ally in South America - that switching recognition would bring economic benefits, a pitch that has resonated with some opposition figures even as the president publicly reaffirms support for Taipei. Washington and Taipei are also engaged in efforts to retain Paraguay's backing of Taiwan, underscoring the geopolitical stakes of the lobbying campaign.

Key Points

  • China has increased organized visits for Paraguayan lawmakers, journalists and political figures, showcasing advanced healthcare, manufacturing and transport projects to advocate switching recognition from Taiwan to Beijing - impacting infrastructure and trade sectors.
  • Paraguay remains Taiwan's only diplomatic ally in South America; a switch would be a symbolic diplomatic victory for China and could alter market access for Paraguayan exports such as beef and soy - affecting agriculture and logistics.
  • Washington and Taipei are intensifying efforts to retain Paraguay's support, reflected in a U.S. defense pact, participation in White House summits, and Taiwanese funding of local projects - relevant to defense, diplomacy and development sectors.

ASUNCION - A series of well-funded visits to China for Paraguayan lawmakers and media figures has brought fresh attention to the diplomatic contest between Beijing and Taipei over recognition by Asuncion. Participants describe an organized campaign of hospitality and tightly choreographed tours that, they say, were intended to show what economic opportunities Paraguay could gain by switching formal ties from Taiwan to China.

Opposition lawmaker Leidy Galeano, who traveled to China late last year on an all-expenses-paid itinerary covering six cities, said the trip left her convinced that Paraguay was at risk of missing major economic opportunities by maintaining relations with Taiwan. "Everything I saw there, I wanted for my country," she said. Galeano is a member of the newly-formed Yo Creo party, several senior members of which have spoken favorably about China.

Those who took part in such visits report stays at luxury hotels, formal banquets, and culturally symbolic outings such as trips to the Great Wall, all organized as part of what participants viewed as a coordinated effort to sway Paraguay's political class. People familiar with the visits said the invitations came from the Chinese consulate in Sao Paulo.


A small but symbolic prize

With a population of about 6.4 million and a landlocked geography, Paraguay is small on the global stage. Yet its diplomatic stance carries outsized symbolic weight: it remains Taiwan's only ally in South America and one of just 12 countries worldwide that recognize Taipei. A decision by Paraguay to establish diplomatic relations with Beijing would thus be seen as a high-profile success for China's long-running effort to diplomatically isolate Taiwan.

Observers note that the developments in Paraguay mirror a broader pattern across the region, where countries including Panama, the Dominican Republic, El Salvador, Nicaragua and Honduras switched recognition following sustained engagement and offers of trade and infrastructure from Beijing. In Paraguay, the appeal presented by China has been framed largely in economic terms, highlighting technology, healthcare advancements and the promise of faster trade access.


Official positions and domestic politics

Paraguayan President Santiago Pena has publicly reaffirmed support for Taiwan, arguing on his podcast in December that countries which switched recognition to China have been worse off than Paraguay. With more than two years left in his term, Pena faces limited immediate political incentive to alter the country's Taiwan policy, though analysts say internal succession dynamics in his ruling Colorado Party could reshape the political landscape ahead of future elections.

The presidency did not respond to a request for comment. Paraguay's foreign ministry issued a statement asserting that relations with Taiwan "are founded on principles and values of freedom, democracy, human rights, and the rule of law."


Competing outreach from Washington and Taipei

China's outreach in Paraguay is occurring alongside stepped-up efforts by Taipei and Washington to preserve diplomatic ties. Paraguay signed a defense pact with the United States in January, joined a U.S.-backed group referred to as the "Board of Peace," and participated in a White House summit on critical minerals earlier this year. Washington also lifted sanctions on former president Horacio Cartes, a mentor to President Pena. U.S. and Taiwanese representatives have increased engagement with Paraguayan officials to counter Beijing's influence.

Taiwan's foreign ministry has said Beijing is attempting to "poach" its allies and that it is actively working to maintain ties with all of Taiwan's diplomatic partners. Officials from Taiwan's embassy in Asuncion have sought to bolster relations through media outreach and by inviting Paraguayan congress members to visit Taiwan.


How the China visits were presented

Interviews with half a dozen people who participated in the trips - including three lawmakers and three journalists - and a review of itineraries show visits have risen sharply since late 2023. Reuters compiled a list showing at least 19 Paraguayan lawmakers, five journalists, and an emerging opposition presidential contender traveled to China since that time, with more trips booked for March.

Chinese officials, participants said, used facility tours and high-profile demonstrations of technological capability to illustrate what Paraguay might gain from closer relations. Liberal Party Deputy Billy Vaesken, who spent 15 days in China in late 2024 alongside two Colorado Party lawmakers, said he now advocates deeper ties with Beijing, eyeing potential Chinese investment in domestic infrastructure. "We must not miss our chance," he said.

Lawmaker Roya Torres recalled an October 2025 trip during which officials highlighted advanced healthcare services and technology, taking visitors through treatment centers and high-speed rail stations. Torres said the healthcare visits made a powerful impression, contrasting sharply with Paraguayan medical facilities and reinforcing messages from Chinese hosts that Paraguay was at risk of being left behind technologically and commercially if it maintained recognition of Taipei.


Economic arguments at the center of the debate

Paraguay has registered a period of accelerated growth in recent years, driven by beef exports, manufacturing, and construction. The country achieved investment-grade status in 2024. Nonetheless, persistent corruption and shortfalls in education and infrastructure investment mean that economic gains are unevenly distributed.

A key practical constraint to Paraguayan trade with China is diplomatic recognition: Beijing's policy of not trading with nations that recognize Taipei forces Paraguayan exporters to route shipments through Argentina and Brazil, adding costs and cutting into margins. That structural limitation is central to the argument offered by Chinese hosts during tours: direct access to China could improve competitiveness and foster investment in local infrastructure.

At the same time, Chinese goods are increasingly present in the Paraguayan market, with imports topping $6 billion in 2025, a new record according to official data. Taipei, for its part, has funded projects such as the parliament building and a university campus currently under construction. A local research center, CADEP, reported that ties with Taiwan have delivered only modest economic benefits to Paraguay.


Opacity around funding and invitations

Participants on the trips said invitations came from the Chinese consulate in Sao Paulo, but Reuters was unable to independently verify who funded the visits. The Chinese foreign ministry told Reuters that siding with Taiwan "holds no future" and that a growing number of Paraguayans now see establishing ties with Beijing as serving long-term interests for both countries. It denied that it was engaged in lobbying, describing people-to-people exchanges as a two-way effort that did not require anyone to lobby.

The U.S. embassy in Asuncion expressed concern about the framing of official Chinese-guided tours, saying it hoped Paraguayans on those trips would "understand the degree of information manipulation" inherent in them.


Reactions inside Paraguay

Some Colorado Party members and other prominent lawmakers who attended China trips declined to comment. Several opposition participants described the tours as providing an unfiltered glimpse into China's technological ambitions and political confidence.

Liberal Party Deputy Billy Vaesken, who plans another trip to China this year, said he has observed an increase in parliamentarians interested in Beijing. He offered a starkly worded prognosis about Taiwan's future, asserting that "Before long, Taiwan will end up like Hong Kong - it will become part of China, be annexed, and Paraguayans will be left with nothing." The quote reflects views voiced by some participants but also signals the intensity of feeling on the matter within a segment of Paraguay's political class.


Public sentiment and polling

Public attitudes may be shifting. A recent poll by consultancy Metro indicated rising support for establishing relations with China, though Metro declined to comment on who commissioned the survey. The limits of public polling and the opaque nature of the diplomatic outreach mean it is difficult to draw firm conclusions about the broader electorate's preferences at this stage.


What is at stake

For Paraguay, the question of whom to recognize is as much economic as it is diplomatic. Local industries such as agriculture - notably soy and beef - could face altered market access dynamics depending on whether Paraguay maintains ties with Taipei. Infrastructure, logistics and construction sectors are likely to be focal points in any discussions about potential Chinese investment.

For Taiwan, losing Paraguay would be a blow to its diplomatic standing in the region. For China, securing Paraguay would represent another step in a long campaign to expand influence in Latin America. For the United States, the contest is part of a wider strategic effort to maintain influence in the Western Hemisphere.


Conclusion

The recent uptick in China-hosted visits for Paraguayan officials, journalists and political figures has put a spotlight on how diplomatic persuasion is being wielded through displays of technology, healthcare and infrastructure. While President Pena has publicly stood by Taipei for now, the mix of domestic political dynamics, persuasive imagery from China, and active counter-efforts by Taipei and Washington means Paraguay's long-standing alignment with Taiwan remains a live and contested issue.

Risks

  • Shifts in diplomatic recognition could disrupt Paraguay's export routes to China, currently routed through Argentina and Brazil, with potential economic consequences for the agriculture and logistics sectors.
  • Opaque funding and the framed nature of China-guided tours raise concerns about information framing and influence operations, which could complicate policy-making and political alignment across Paraguay's parties - relevant to governance and public-sector investment decisions.
  • Domestic political changes within the ruling Colorado Party or alliances with opposition groups that are more open to Beijing may create uncertainty for ongoing infrastructure and foreign investment planning, affecting construction and public finance sectors.

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