Paraguay president vows to defend Taiwan ties ‘with all its strength’

Paraguayan president Santiago Peña said Monday that his country would “stand firmly by Taiwan”, describing the 68-year diplomatic relationship as a strategic and values-based alliance that the country is prepared to defend “with all its strength and with a loud voice”.

Speaking at a Taiwan–Paraguay business forum in Asunción, Peña said his country’s partnership with the self-ruled island reflects Paraguay’s sovereign foreign policy and its commitment to democratic principles, not just economic interests.

The remarks came months after Paraguay expelled a senior mainland Chinese diplomat in December for allegedly interfering in domestic politics over the Taiwan issue.

Paraguayan authorities said at the time that Xu Wei, a Beijing‑based envoy visiting Asunción for a UN event, skipped official meetings to privately urge opposition lawmakers to switch recognition from Taipei to Beijing. They declared Xu persona non grata, accusing him of attempting to undermine the country’s long-standing diplomatic stance.

Xu defended his move by claiming that it would bring “thousands of advantages”, including expanded trade and investment.

Paraguay is the only South American nation that still gives official diplomatic recognition to Taiwan, and the relationship remains politically sensitive. While business leaders and opposition lawmakers have pushed for a pivot to China, Peña, who studied in Taiwan, has remained committed to Taipei.

Beijing sees Taiwan as a part of China that will eventually be reunited, by force if necessary. Most countries, including the US, do not recognise it as an independent state, but Washington opposes any attempt to take the island by force and remains committed to supplying it with weapons.

“Paraguay is now at a stage of development where it has the economic strength to choose its friends without being extorted by any country,” Peña said on Monday. “We do not disregard the People’s Republic of China, but we recognise the self-determination of the people of Taiwan.”

Peña framed the alliance as a matter of shared historical experience.

“Defending Taiwan is also defending Paraguay,” he said. “This is an act of solidarity with a people that went through something very similar to what we did,” in reference to the South American country’s transition from dictatorship to democracy and the challenges it faced in establishing an independent, internationally recognised state.

The business forum was attended by Taiwan’s foreign minister, Lin Chia‑lung, and a delegation of 30 leaders from the island’s high‑tech and manufacturing sectors. Visiting since Saturday, the entourage planned to promote deeper investment ties and prepare for an upcoming visit by Taiwan’s top leader, Lai Ching‑te, expected next month.

For Peña, the event provided an opportunity to showcase Paraguay’s stability and ambitions as a regional technology hub. He argued that Taiwanese firms should see Paraguay “not just as a diplomatic ally, but as a smart place to do business”.

The Taiwanese delegation visited industrial estates, a planned hi-tech district outside Asunción, and the Itaipú hydroelectric dam. It also highlighted Taiwan’s development help, including the expansion of a digital hospital management system and support for new infrastructure.

The healthcare management network, funded and developed by Taiwan, now operates in more than 1,000 public clinics and hospitals across Paraguay, up from just over 200 two years ago.

Paraguayan officials have said the partnership has reduced paperwork, improved transparency in drug prescriptions, and increased efficiency in patient care. Health Minister María Teresa Barán called it “a leap forward for public healthcare”.

During the visit, Taiwan also announced a “zero‑tariff agreement” on Paraguayan pork exports and donated portable ultrasound equipment to public hospitals. There were also pledges to build an artificial intelligence data centre there and expand collaboration on smart medicine.

Lin said Paraguay could emerge as a regional leader and praised the country’s consistent diplomatic support, including its backing of Taiwan’s participation in global forums.

“Through our public health cooperation with Paraguay, we can integrate the smart medicine industry, build up large data sets and expertise, apply artificial intelligence, and help make Paraguay a regional leader across Latin America in this entire vision,” he promised.

Peña also used the occasion to reaffirm his country’s broader foreign policy orientation, emphasising long-standing ties rooted in principle.

“We are not willing to negotiate those principles and values,” he said. “That gives us both peace of mind and opportunity.”(SCMP)