Paraguay - Mainland China Trade 2023 Q2: Deficit & Volatility

Key Market Takeaways: Paraguay - Mainland China Trade

The bilateral trade relationship between Paraguay and Mainland China is marked by heavy import dependence and volatile export performance in Q2 2023.

• Deficit-Driven Trade: Paraguay ran a $1.21B trade deficit, with imports ($1.22B) dwarfing exports ($7.20M). Growth was erratic—exports swung from +131.98% YoY in May to -57.99% MoM in June.
• Resource-for-Tech Exchange: Paraguay - Mainland China trade statistics reveal a lopsided structure: 80% of Paraguay’s exports are wood products (HS 44), while 47% of imports are high-tech machinery (HS 85).
• Asymmetric Interdependence: Mainland China holds the value-chain advantage, supplying critical manufactured goods, while Paraguay remains a niche commodity supplier.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Paraguay-Mainland China Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Mainland China

• Total Volume: Exports to Mainland China totaled $7.20M in Q2 2023.
• Growth Trend & Context:
  • YoY growth was erratic, with May surging +131.98% but April declining -35.64%.
  • No specific trade news explains the volatility.
• Key Volatility: May saw a 92.19% MoM spike, while June dropped sharply (-57.99% MoM).

Paraguay Import Performance: Sourcing from Mainland China

• Total Volume: Imports from Mainland China reached $1.22B in Q2 2023.
• Growth Trend & Context:
  • YoY growth remained positive overall (+6.51% in April, +19.88% in May), though June slowed to +3.19%.
• Key Volatility: May recorded the highest imports ($439.40M, +17.54% MoM), while April saw an -18.09% MoM drop.

Paraguay - Mainland China Trade Balance & Market Dynamics

• Net Position: Paraguay ran a trade deficit of $1.21B (Imports: $1.22B vs. Exports: $7.20M).
• Relationship Status: Heavily import-dependent on Mainland China, with exports negligible by comparison.

Paraguay Import Trend from Mainland China 2023 Q2 (Source: yTrade)**

Paraguay Export Trend to Mainland China 2023 Q2 (Source: yTrade)**

Get Historical Paraguay Mainland China Trade Records

Paraguay-Mainland China Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Mainland China

• Top Commodity: Rank #1 Export is HS 44 (Wood and articles of wood) with 80.16% share.
• Demand Driver: Mainland China uses these for industrial processing (e.g., construction, furniture manufacturing).
• Concentration: Trade is highly concentrated, with wood products dominating over 80% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Mainland China

• Top Commodity: Rank #1 Import is HS 85 (Electrical machinery and equipment) with 46.89% share.
• Dependency Nature: Critical technology dependency, as these imports likely include electronics, appliances, or industrial machinery.

Paraguay - Mainland China Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (wood) and imports high-tech goods (machinery, electronics).
• Value Chain Position: Mainland China holds the higher value-add position, supplying advanced manufactured goods, while Paraguay provides low-processed commodities.

Import Analysis by Product: Mainland China to Paraguay (Source: yTrade)

Export Analysis by Product: Paraguay to Mainland China (Source: yTrade)

Check Detailed Paraguay-Mainland China Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Paraguay’s trade with Mainland China is expected to remain volatile in the near term, driven by erratic export performance and deepening import dependency. While demand for Paraguayan wood (HS 44) may sustain due to China’s industrial needs, the widening trade deficit ($1.21B in Q2) signals structural risks. Exporters should brace for uneven growth, while importers must prepare for potential supply chain disruptions amid China’s shifting economic priorities. Without diversification, Paraguay’s reliance on raw material exports and high-tech imports will keep it locked in a low-value-add position.

Strategic Moves

• Secure Long-term Wood Supply Contracts: Paraguayan exporters must lock in stable agreements with Chinese buyers to mitigate price volatility and ensure consistent demand for HS 44 (wood products).
• Diversify Import Sources for Critical Tech: Reduce overreliance on Mainland China for HS 85 (electrical machinery) by exploring alternative suppliers in Southeast Asia or Eastern Europe to hedge against geopolitical or logistical risks.
• Invest in Light Manufacturing for Export Upgrading: Paraguay should prioritize value-added processing of raw materials (e.g., furniture from wood) to capture higher margins and reduce the trade deficit with China.

Frequently Asked Questions

How did Paraguay - Mainland China trade perform in 2023 Q2?

Paraguay exported $7.20M to Mainland China, with erratic YoY growth, while imports totaled $1.22B, showing overall positive YoY growth.

What are the top exports from Paraguay to Mainland China?

Wood and articles of wood (HS 44) dominated Paraguay's exports, accounting for 80.16% of shipments to Mainland China.

What does Paraguay import from Mainland China?

Electrical machinery and equipment (HS 85) was the top import, representing 46.89% of Paraguay's purchases from Mainland China.

What is the trade balance between Paraguay and Mainland China?

Paraguay ran a trade deficit of $1.21B, heavily relying on imports from Mainland China compared to minimal exports.