By María Giménez | 2024-12-20

ASUNCIÓN -- Paraguayan authorities are investigating the potential involvement of Chinese multinational company Huawei in an alleged espionage case targeting Taiwanese Ambassador Han Chih-cheng.

The incident reportedly occurred on October 9, when a gray Audi was parked outside the ambassador's residence in Asunción.

An embassy employee noticed suspicious activity and alerted police stationed nearby.

When an officer approached the vehicle, its two occupants started the engine and fled the scene, according to a December 18 report by Infobae.

Using the car's license plate, investigators traced the vehicle to Huawei Technologies Paraguay, a company linked to the Chinese Communist Party (CCP).

"There was a 'man with oriental features' positioned near Ambassador Han Chih-cheng's residence, aiming what appeared to be an electronic device toward the diplomatic building. Surveillance cameras captured the event," Infobae reported.

While the driver was identified as a Paraguayan man named Dionisio Duarte, the identity of the second individual remains unknown.

Witnesses described the unidentified individual as the one actively pointing the device at the ambassador's residence.

Investigators described the event as "very unusual," noting that the individuals appeared to be collecting information.

Chinese cyber espionage

The Taiwanese embassy in Paraguay has heightened its alert status amid concerns that recent events may involve attempts to compromise the confidentiality of its diplomatic operations, potentially tied to Chinese hacker infiltration of Paraguayan government networks.

A joint statement by the US embassy in Paraguay and the Ministry of Information and Communication Technologies on November 26 revealed evidence of Chinese cyber espionage targeting Paraguay's government systems.

The statement identified the cyber actor "Flax Typhoon," a group linked to the Chinese government, as being behind these activities.

According to the statement, Flax Typhoon utilized malware to infiltrate systems, extract sensitive information and maintain a concealed presence over extended periods.

Microsoft had previously warned in mid-2023 that the group was conducting similar operations against organizations in Taiwan, aiming to gather intelligence through sophisticated cyber means.

A diplomat expelled

These developments follow the early December expulsion of a Chinese delegation member accredited to attend a UNESCO meeting in Paraguay.

Rather than attend that meeting, Xu Wei interfered in internal affairs, the Paraguayan government said. It revoked his visa before he departed for São Paulo on December 7.

Xu, a Chinese envoy in Latin America, stirred criticism during a December 4 meeting with Paraguayan politicians in Congress.

Xu openly urged Paraguay to sever ties with Taiwan and establish diplomatic relations with China, asserting, "It's not about China and Taiwan; it's China or Taiwan. I recommend Paraguay make the right decision as soon as possible. That takes courage."

Paraguay remains one of only 12 nations globally to recognize Taiwan, a stance Beijing refuses to acknowledge.

These include Haiti and several smaller island nations in the Caribbean and Pacific. Beijing views Taiwan as an integral part of its territory and actively seeks to isolate it diplomatically.