On September 17th, Paraguay's Finance Minister Carlos Fernandez stated in an interview that China's investment in Latin America is replacing that of the United States and Europe, and Paraguay is willing to engage in dialogue with any Chinese investor.

"I am willing to talk to any Chinese entrepreneur who wants to invest and create employment opportunities in Paraguay. We are open to everyone."

Fernandez also stated that China's investment in Latin America is replacing that of the United States and Europe, and he reminded the United States to play a greater role in investment in Latin America such as Paraguay, otherwise there will be others replacing the United States.

Carlos Fernandez was interviewed. Video screenshot

According to the website of the Chinese Ministry of Foreign Affairs, Paraguay's national economy is mainly based on agriculture and animal husbandry, with a weak industrial foundation, making it one of the most backward countries in Latin America.

Currently, issues such as inflation, debt, and employment are intertwined with the economy of this South American country. In 2022, Paraguay's gross domestic product was only $41.935 billion, with an inflation rate of 8.1%.

Last year, the Paraguayan government's deficit grew to 3% of GDP, with an average growth rate of 0.7% over the past four years, and the absolute poverty rate also rising.

At the same time, Paraguay's three neighboring countries - Argentina, Bolivia, and Brazil - all have China as their main trading partner, and international trade is helping to promote the economic development of these countries. In fact, China is the largest trading partner of many Latin American countries and a major investor in mining, agriculture, and infrastructure.

"Without comparison, there is no harm." Paraguay's domestic economy is in trouble, but neighboring countries benefit from doing business with China. Paraguay finally can't hold back, so Fernandez made a statement in the above interview.

According to the statistics of the General Administration of Customs of China, the total trade volume between China and Paraguay in 2022 was 1.979 billion US dollars, of which Chinese exports amounted to 1.895 billion US dollars and imports amounted to 84 million US dollars. Pakistan's economy mainly depends on the export of beef and soybeans, and Chinese Mainland is its largest importer of meat products.

The Taiwan authorities are sticking to this layer of relationship and are increasingly dragging down the development of Paraguay.

In addition, the market size in Taiwan is already a drop in the bucket for Paraguay's economic demand.

Under pressure, the Taiwan Foreign Affairs Department stepped forward and claimed that this was "false information on the internet", but also had to admit that "physical school buildings are still under construction".

Paraguay has been conducting transit trade with China through Uruguay for a long time, which seriously harms the interests of Brazilian farmers.

Another presidential candidate, Kubass, also stated that Pakistan exports hundreds of thousands of tons of meat annually and urgently needs to open up the huge market in China. Kubass also announced his support for establishing formal diplomatic relations with China.

In fact, more and more knowledgeable people in Paraguay realize that establishing diplomatic relations with China is not only a trend, but also a true way out for the country's development.

Even before the results of the Paraguayan general election were announced, scholar Fernando Massey, who had previously served as the chief advisor to the Brazilian Ministry of Finance and the Ministry of Commerce, asserted in April this year that regardless of who won the current presidential election, Paraguay would eventually establish diplomatic relations with Beijing because Paraguay needed the Chinese market.

Fernando stated that establishing diplomatic relations with China will bring potential significant economic benefits to Paraguay. Paraguay can not only increase exports, but also export higher value products, especially those with competitive advantages.

He believes that this transformation will also create opportunities for investment diversification in the country and clear the way for reaching a regional free trade agreement with China. "China is one of the most important components of the world market, and Paraguay cannot be absent from the Chinese market."

At the second China Paraguay Relations Seminar held in April, participating Brazilian experts and scholars unanimously agreed that Paraguay needs to further strengthen economic and trade cooperation with China, seize current opportunities, and promote domestic economic transformation and development.

Honduras has a leading example, and Paraguay's future should become increasingly clear.

"Adhering to the One China principle is the international righteousness, the aspiration of the people, and the trend of the times. We believe that relevant countries will eventually recognize the international trend and make decisions that are in line with historical trends," Mao Ning said.