Paraguay: The Last South American Ally of Taiwan?

The article examines the specifics of the development of Paraguay-Taiwan relations. The concept of ideological unity, which was the historical basis for Taiwan-Paraguay cooperation, is being replaced by a fundamentally different system of interaction between the two. A new system is built by both partners on the idea of obtaining political and economic benefits. The political elites of Paraguay are currently rethinking country’s policy, seeing opportunities for developing economy in an alliance with the People’s Republic of China instead of Taiwan. Based on the analysis of a number of US documents, attention is paid to the US factor and its policy of supporting Taiwan’s allies. The article traces the consistent growth of Paraguay’s interest in establishing trade and economic ties and searching for new opportunities within Asian countries (primarily Southeast nations). The author analyzes the prospects for the development of Paraguay-China relations, and the influence of US policy and economic activities of Asian nations on it. Continuing the policy of support for Taiwan could lead to greater diversification of Paraguay’s trade and economic alliances. Otherwise, China may become Paraguay’s main trade partner in case of the establishment of diplomatic relations between them.

Taiwan, China, Paraguay, One China Policy