Paraguay · Full chronicle and history

On October 15, Paraguayan Minister of Information and Communication Technologies Villate, who was sanctioned by China, published an article on the government's official website. He questioned why Beijing responded with sanctions if the excluded suppliers were truly independent private enterprises, and announced the acceleration of cooperation with Taiwan on AI computing power and technology parks.

China's Foreign Ministry issued a statement imposing sanctions on Paraguay's Minister of Communications and Technology Villalba, who supports Taiwan's diplomatic relations, and Belize's Minister of Foreign Affairs and Foreign Trade Fonseca.

On October 12, 2026, Chinese official authorities announced that, effective immediately, countermeasures would be imposed on Villate, Paraguay's Minister of Communications and Technology. The sanctions include freezing his assets within China, prohibiting organizations and individuals in China from conducting transactions and cooperation with him, and banning him from entering mainland China as well as the Hong Kong and Macao special administrative regions. Outside observers analyze that this move is related to Paraguay's insistence on maintaining diplomatic relations with Taiwan.

On October 12, Paraguay's Minister of Communications and Technology Villalba, who was sanctioned by China, gave an interview to ABC Color, comparing the sanctions to a "medal of honor," and then stated on X that he would accelerate cooperation projects with Taiwan.

As a diplomatic ally of Taiwan and without diplomatic relations with China, Paraguay's export volume to China in 2025 was only 50 million USD, yet its average GDP growth rate over the past fifteen years ranks fifth in Latin America.

Chinese diplomat Xu Wei urged Paraguay to recognize China rather than Taiwan, saying the choice would benefit Paraguay; he was expelled by Paraguay, which accused him of interfering in its internal affairs. Paraguay is Taiwan's only remaining diplomatic ally in South America.