Paraguay President Praises Taiwan Ties Amid Chinese Pressure

Paraguay’s formal alliance with Taiwan came under fresh pressure in Taipei, where President Santiago Peña used his visit to defend a relationship he cast as grounded in freedom, democracy and practical gains. Paraguay is Taiwan’s last diplomatic ally in South America, and Beijing has stepped up efforts to pull Asunción away from the island as the wider struggle over diplomatic recognition sharpened.

Peña, speaking in English to university students after receiving an honorary doctorate, said Paraguay and Taiwan shared a friendship built on concrete achievements and real opportunities for both nations. Taiwanese Vice President Hsiao Bi-khim reinforced the message, saying she had been impressed by Peña in Washington and joking that a principled partnership with Taiwan made it “perfecto.”

The visit carried weight far beyond ceremony. Paraguay has recognized Taiwan since 1957, making it Taiwan’s longest-standing ally in Latin America, and one of only 12 countries that still maintain formal relations with the self-ruled island. Peña’s trip was his second as president to Taiwan and was aimed at deepening diplomatic and economic ties, a signal that Asunción is not ready to abandon a partnership Beijing has aggressively tried to pry loose.

China has publicly pressed Paraguay to switch recognition, with foreign ministry spokesperson Lin Jian urging Asunción to move away from the Taiwan authorities. Behind that pressure is a familiar strategic calculation: Beijing offers access to a far larger market, while Taiwan depends on the loyalty of a shrinking circle of partners to preserve its international space. Paraguay’s refusal to break with Taipei gives Taiwan a rare foothold in South America and a symbolic rebuttal to China’s campaign.

The relationship is not only symbolic. Taiwan’s Ministry of Economic Affairs said the two sides held their 23rd Taiwan-Paraguay Economic Cooperation Conference on Oct. 14, 2025, where officials discussed investment promotion, market access, infrastructure, innovation technology and science parks. Taiwan also said bilateral trade with Paraguay rose by more than 100% in value in the first eight months of 2025, underscoring how the alliance has become tied to commerce as much as diplomacy.

That economic layer has become increasingly important in Paraguay, where supporters of the Taiwan tie point to projects such as the Taiwan-Paraguay Smart Technology Park and a renewable-energy cooperation memorandum of understanding signed last year. For Peña, who also has a good relationship with the United States and visited Washington in February for Trump’s new board of peace, the challenge is balancing that Western alignment with intensifying Chinese pressure.

Taiwan’s foreign ministry said Peña’s state visit showed the friendship between the two nations could not be undermined by Chinese coercion. For now, Paraguay’s choice keeps it at the center of a broader geopolitical contest, one that pits values-based recognition against the economic pull of Beijing.