Paraguay’s diplomatic ties with Taiwan remain intact despite increasing pressure from China, following the expulsion of Chinese diplomat Xu Wei. The incident, which escalated after Xu's visit to Paraguay, has sparked tensions regarding the nation's foreign policy direction.

Xu, a senior Chinese envoy for Latin America, was in Paraguay attending a UNESCO meeting when he met with opposition lawmakers to urge the country to sever its long-standing relations with Taiwan. Paraguay is the only South American country that still recognises Taiwan, a status China has been actively working to change. The Chinese diplomat explicitly stated that Paraguay must choose between China and Taiwan, suggesting that Taiwan's support for Paraguayan exports, such as soy and beef, was not as beneficial as a partnership with China. He hinted at enhanced trade deals should Paraguay decide to switch allegiance.

The Paraguayan government responded swiftly, declaring Xu persona non grata and revoking his visa. The Ministry of Foreign Affairs accused him of interfering in internal matters. In a statement, the Paraguayan government underscored its firm commitment to Taiwan despite Beijing's mounting diplomatic pressure. Taiwan’s embassy in Paraguay condemned Xu’s actions, calling him an "infiltrator" aimed at undermining the 60-year relationship between the two nations.

Meanwhile, Taiwan continues its support for Paraguay with practical assistance. The Taiwanese government has recently sent 30 electric buses to Paraguay, as part of a broader initiative to modernise the country’s public transport and reduce its carbon footprint. The buses, manufactured by Taiwanese company Master Bus, are expected to arrive in February 2025. This marks the beginning of a larger plan to bring 1,000 electric buses to Paraguay in the coming years, reinforcing diplomatic and economic cooperation between the two countries.

Paraguay and Taiwan share a long-standing diplomatic relationship that began in 1957, making it one of the few countries in South America to maintain such ties with the Republic of China (Taiwan). Over the decades, the two nations have forged numerous agreements, particularly in the areas of trade, culture and development assistance. Despite the economic influence of the People's Republic of China, particularly through trade in soy and beef, Paraguay has historically supported Taiwan, largely due to developmental aid and loans provided by Taiwan. The countries' partnership has been marked by several political shifts, especially after the fall of the Stroessner regime, and even faced challenges during Paraguay's presidential transitions in the 21st century.

Despite the growing pressure from China, Paraguay has shown resilience in maintaining its alliance with Taiwan, even as its government explores economic opportunities with Beijing. The evolving situation reflects the broader geopolitical struggle over Taiwan’s international recognition, with Paraguay at the centre of this diplomatic tug-of-war.