By AFP and Entorno | 2025-07-16

ASUNCIÓN, Paraguay -- Paraguay, Taiwan's only remaining diplomatic ally in South America, vowed on July 14 to defend its ties with the self-governing democracy claimed by China and announced its president, Lai Ching-te, will visit in August.

President Santiago Pena hosted Taiwanese Foreign Minister Lin Chia-Lung on a visit to Asunción with a delegation of about 30 business leaders.

"Paraguay is ready to defend this 68-year relationship, which is based on democratic principles and values, with all its strength and with a loud voice," Pena said, adding Taiwan has been "tremendously generous" with its investments in his country.

"We do not disregard China, but we recognize the self-determination of the people of Taiwan," with which Paraguay hoped to move to "a higher level of collaboration," he added.

Lai will visit Paraguay in 30 days, Pena announced at an investment forum.

Among those in attendance on July 14 were Terry Tsao, a senior executive at SEMI, a Taiwanese semiconductor industrial association, as well as representatives of the Taiwanese information technology, communications, smart transportation, agriculture, construction and building industries.

Taiwan is a global chip powerhouse, producing more than half of the world's semiconductors, vital for powering the latest generative artificial intelligence models.

Huawei-linked spying in Paraguay

China's push to isolate Taiwan appears to have moved beyond diplomacy, reaching into digital espionage and street-level surveillance in the heart of Asunción.

Paraguayan authorities launched an investigation last October, after two men were spotted aiming an electronic device at the residence of Taiwanese Ambassador Han Chih-cheng in Asunción. An embassy staffer noticed the suspicious activity and alerted nearby police, who approached the suspects.

The men fled in a gray Audi, which investigators later traced to Huawei Technologies Paraguay, a local subsidiary of the Chinese tech giant with close ties to the Chinese Communist Party, Infobae reported on December 18.

Surveillance footage showed one man, described as having "oriental features," pointing the device at the building. Witnesses said the men appeared to be collecting intelligence. In response, the Taiwanese embassy heightened security measures.

This incident follows growing concerns over Chinese cyberespionage. On November 26, Paraguay's Information and Communication Technologies Ministry and the US embassy publicly accused the Chinese state-linked group "Flax Typhoon" of infiltrating government systems to extract sensitive data. Microsoft had previously warned that the same group targeted Taiwan.

Tensions escalated further in early December when Paraguay expelled Chinese envoy Xu Wei. He had used a visit to lobby lawmakers to cut ties with Taiwan, telling them bluntly: "It's China or Taiwan."