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Seeing that neighboring countries are strengthening trade relations with mainland China, Honduras, which just "broke off diplomatic relations" with the Taiwan authorities, has also achieved fruitful results in cooperation with mainland China. All these have made the Taiwan authorities' only remaining "diplomatic relationship" in South America - Paraguay, very excited.

The mainland’s attitude is very clear. Paraguay cannot just talk without taking action. Only by making the right choice can it get what it wants.

Paraguayan President Enrique Pena

Recently, Paraguayan President Peña Nieto said that although Paraguay has so-called "diplomatic" relations with Taiwan, he is fully willing to reach a trade agreement with mainland China through the Southern Common Market.

Paraguay is currently the Taiwan authorities' only diplomatic ally in South America and the largest of their 12 diplomatic allies.

However, Paraguay's economy is mainly supported by agriculture and animal husbandry, and its industrial development is relatively backward. It is one of the most backward countries in Latin America. Problems such as debt and inflation are difficult to solve.

There is no harm without comparison. When Paraguay's domestic economy was restricted, its neighboring countries: Brazil, Argentina, and Bolivia, were doing booming business with mainland China, and positive signals of economic development were frequently sent out.

Mainland China is not only the largest trading partner of many Latin American countries, but also provides assistance to these countries in areas such as infrastructure and minerals.

Seeing neighboring countries benefiting from trade with China one after another, Paraguay naturally does not want to be left behind.

Honduran President Castro meets with Chinese Vice Foreign Minister Hua Chunying

In particular, Honduras, which "broke off diplomatic relations" with the Taiwan authorities in March last year, recently signed a cooperation agreement with visiting Chinese Vice Foreign Minister Hua Chunying to build more than 300 education centers in Honduras.

At the same time, Hua Chunying also discussed trade-related matters with Honduras. The preliminary agreement will take effect on the 1st of next month. At that time, Honduran products such as coffee, shrimp and melons will enter the Chinese mainland market duty-free.

Honduran Foreign Minister Reina said, "Once this trade agreement with mainland China is implemented, the trade volume between the two countries will increase several times."

In addition, Hua Chunying also visited Brazil and Uruguay. While in Uruguay, Hua Chunying attended the seventh China-Mercosur dialogue, the last of which was held six years ago.

Honduran Foreign Minister Reina (third from left) and Chinese Ambassador to Honduras Yu Bo (first from left) signed relevant documents

As a regional cooperation organization, the Southern Common Market was first established by Paraguay, Uruguay, Argentina and Brazil. Bolivia just joined last month.

The organization, the world's fifth largest economy, has been negotiating with the European Union to finalize a long-awaited trade deal; on the other hand, the organization has also turned its attention to the East and discussed potential trade cooperation with China.

Peña Nieto also wants to take advantage of this "trade express" and conduct trade cooperation with mainland China. After all, Paraguay's current so-called "diplomatic relations" with the Taiwan authorities have restricted Paraguay's ability to conduct direct trade with mainland China.

For many years, Paraguay had to go through Uruguay and carry out cumbersome re-export trade with China. Paraguayan products such as soybeans and beef could hardly reach the huge market of mainland China directly.

Paraguayan beef products

Although there have been repeated reports that Paraguay may "sever diplomatic ties" with Taiwan, no actual action has been seen.

In contrast, Honduras has taken this step decisively and reaped the fruits of deepening cooperation with mainland China, which undoubtedly sets an example for Paraguay.

Now, it seems to be becoming clearer where Paraguay should go.

In response to Paraguay's repeated goodwill gestures, the mainland's position has remained consistent: it welcomes the establishment of diplomatic relations with mainland China, but the prerequisite is that the "one China" principle must be respected and upheld. This is the choice of history and the justice.

But we also know that if Paraguay "breaks off diplomatic relations" with the Taiwan authorities and instead establishes diplomatic relations with the mainland, it may not be smooth sailing. This decision not only concerns Paraguay's own national interests, but also involves the geopolitical structure of South America.

The Paraguayan government needs to carefully weigh the pros and cons, while also dealing with interference from external forces. I believe that Paraguay will make the right choice one day.