China rejects Paraguay's proposal to expand trade while keeping Taiwan ties

China has rejected Paraguay's suggestion that it could strengthen trade relations with Beijing while maintaining diplomatic ties with Taiwan.

Speaking during the Mercosur summit on Tuesday, Paraguayan Foreign Minister Rubén Ramírez said his country was open to expanding trade with China provided it was not required to end its diplomatic relationship with Taiwan.

In response, Chinese Foreign Ministry spokesperson Lin Jian reiterated that recognition of the one-China principle is the political foundation for diplomatic relations with Beijing. He urged Paraguay to recognize the principle and sever its ties with Taiwan.

Paraguay's Minister of Foreign Affairs, Ruben Ramirez, speaks during the 68th meeting of the Common Market Council (CMC) in Luque, Paraguay, 29 June 2026. Photo: VCG

Chinese scholar Sun Hongbo of the Chinese Academy of Social Sciences described Paraguay's proposal as "wishful thinking," arguing that China would not separate economic cooperation from its core political interests.

Paraguay is the only South American country that maintains diplomatic relations with Taiwan and the only Mercosur member without diplomatic ties to China. Despite this, China remains one of Paraguay's largest trading partners and a major source of imports.

The comments came as Mercosur members continue exploring closer economic cooperation with China.