Margaret Myers, director of the Asia & Latin America Program at the Inter-American Dialogue: “Paraguay—or the Colorado Party, more accurately—has been steadfast in its support for Taiwan over the past few decades. The 2023 presidential election was something of a referendum on the country’s Taiwan ties, and the Colorado Party’s victory ensured continued political support for Taiwan for the next few years, at least. But Paraguay still depends heavily on the Chinese market, and pressure to engage with China is mounting as its agricultural suppliers seek direct links to Chinese buyers. It stands to reason, then, that Paraguay’s government is supportive of stronger trade and investment relations with China. Being a Taiwan ally doesn’t preclude Chinese economic engagement, after all, and the country has already seen some Chinese investment. Still, major shifts in Paraguay-China trade would really only come of a decision to cut ties to Taiwan or as a result of…”