When Paraguayan opposition lawmaker Leidy Galeano returned from an all-expenses-paid tour of six Chinese cities late last year, she was convinced that China represented a significant opportunity for her nation. The trip, organized and funded by Chinese entities, included visits to Beijing, Shanghai, and Guangzhou, and aimed to showcase China’s economic and technological advancements. Galeano’s experience reflects a broader, and increasingly assertive, effort by China to cultivate relationships with Paraguayan political figures as it seeks to shift the country’s diplomatic recognition from Taiwan.
Paraguay is one of only a handful of nations that still officially recognizes Taiwan, a situation China is actively working to change. According to reports, China’s strategy involves a multi-pronged approach, including increased trade offers, investment proposals, and, crucially, sponsored visits for Paraguayan officials. The Japan Times reported that China is actively “wooing” Paraguay’s political class, and Galeano’s trip is a clear example of this strategy in action.
The all-expenses-paid nature of the trip has drawn criticism from some quarters in Paraguay, with concerns raised about potential undue influence. However, Galeano has defended her participation, arguing that it was essential to understand the potential benefits of closer ties with China. She has publicly stated her belief that Paraguay could gain significantly from increased trade and investment with the Asian economic power.
The timing of China’s increased engagement with Paraguay is significant. Paraguay’s current president, Santiago Peña, took office in August 2023, and his administration has signaled a willingness to explore closer economic ties with China, while maintaining its diplomatic relationship with Taiwan. This position represents a delicate balancing act, as any shift in Paraguay’s diplomatic recognition would have major geopolitical implications.
China’s economic influence in Paraguay is already growing. While official diplomatic relations remain with Taiwan, trade between Paraguay and China has been steadily increasing. Paraguay primarily exports beef, soybeans, and other agricultural products, and China is becoming an increasingly important market for these goods. This economic interdependence provides China with leverage as it seeks to deepen its relationship with Paraguay.
The diplomatic situation is further complicated by the upcoming presidential elections in Taiwan in January 2024. The outcome of those elections could influence Paraguay’s decision-making process, as a change in leadership in Taiwan could alter the dynamics of the relationship.
Reuters reported that China’s efforts extend beyond individual trips for lawmakers, encompassing broader engagement with Paraguayan society. This includes scholarships for Paraguayan students to study in China and cultural exchange programs. These initiatives are designed to foster goodwill and build long-term relationships.
As of early March 2026, the Paraguayan government has not announced any immediate plans to sever ties with Taiwan, but the possibility remains a significant point of contention in the country’s foreign policy. President Peña has maintained a cautious approach, emphasizing the importance of maintaining both economic opportunities and existing diplomatic alliances. The situation remains fluid, with China continuing its efforts to sway Paraguayan opinion and secure a diplomatic breakthrough.
