Paraguay's Election: Geopolitical Implications and Diplomatic Tensions.

Paraguay's upcoming presidential election is a tight race between the ruling right-wing Colorado Party candidate and the main opposition figure, centrist Efrain Alegre, with the country's diplomatic relationship with Taiwan at stake. Paraguay is currently the only country in South America that recognizes Taiwan as a sovereign state, but Alegre is open to changing that policy, arguing that the cost of Paraguay missing out on exports to China is a bad fiscal decision for the country. China's unprecedented investment in Latin America through its Belt and Road initiative has led to a dwindling presence of Taiwan in the region, making Paraguay's support high stakes for Taiwan.