Paraguay - Mainland China Trade 2023 Q3: Deficit-Driven Exchange

Key Market Takeaways: Paraguay - Mainland China Trade

The bilateral trade relationship between Paraguay and Mainland China reflects heavy import reliance with minimal export traction in Q3 2023.

• Deficit-Driven Trade: Paraguay ran a $1.406B trade deficit with Mainland China (imports: $1.41B vs. exports: $4.04M), highlighting stark import dependency.
• Resource-for-Tech Exchange: Paraguay’s exports to Mainland China are concentrated in raw materials (chemicals, base metals), while imports are dominated by high-value electronics (HS 85) and machinery—a classic asymmetrical trade structure.
• One-Sided Dependence: Mainland China holds the strategic advantage, supplying critical technology inputs, while Paraguay remains a niche supplier of low-complexity goods.

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

Paraguay-Mainland China Trade Trend in Q3 2023

Paraguay Export Performance: Shipments to Mainland China

• Total Volume: $4.04M in Q3 2023.
• Growth Trend & Context: YoY declines persisted across all months (-23.16% in Jul, -10.32% in Aug, -11.62% in Sep), signaling sustained demand or competitiveness challenges.
• Key Volatility: August saw a sharp 43.79% MoM rebound after July’s -33.37% drop, though volumes remained low.

Paraguay Import Performance: Sourcing from Mainland China

• Total Volume: $1.41B in Q3 2023.
• Growth Trend & Context: Strong YoY growth in July (+7.88%) and September (+32.61%), offsetting August’s moderation (+4.65%).
• Key Volatility: September’s imports surged 20.61% MoM, peaking at $536.89M—likely tied to pre-holiday stockpiling or supply chain adjustments.

Paraguay - Mainland China Trade Balance & Market Dynamics

• Net Position: Trade deficit of ~$1.406B (Imports $1.41B > Exports $4.04M).
• Relationship Status: Heavy import reliance underscores Paraguay’s dependency on Mainland China for goods, with minimal export traction.

Paraguay Import Trend from Mainland China 2023 Q3 (Source: yTrade)**

Paraguay Export Trend to Mainland China 2023 Q3 (Source: yTrade)**

Get Historical Paraguay Mainland China Trade Records

Paraguay-Mainland China Top Trading Products in Q3 2023

Paraguay Export Profile: What Does Paraguay Sell to Mainland China

• Top Commodity: HS Code 38 (Chemical products) dominates at 25.28% of exports.
• Demand Driver: Mainland China uses these for industrial processing, likely as raw materials or intermediates in manufacturing.
• Concentration: The top 5 exports account for 81.98% of total exports, indicating high trade concentration.

Paraguay Import Profile: What Does Paraguay Buy from Mainland China

• Top Commodity: HS Code 85 (Electrical machinery) leads at 44.27% of imports.
• Dependency Nature: Critical technology dependency, as these are high-value industrial and consumer electronics.

Paraguay - Mainland China Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (chemicals, base metals) while importing high-tech machinery.
• Value Chain Position: Mainland China holds the higher value-add position, supplying advanced electronics (HS 85, 84) versus Paraguay’s lower-complexity exports (HS 38, 74).

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 deficit with Mainland China is expected to widen further in Q4 2023, driven by persistent demand for high-tech imports (HS 85, 84) and stagnant export growth. The seasonal surge in Chinese pre-holiday stockpiling may temporarily boost Paraguay’s chemical exports (HS 38), but structural reliance on raw materials will limit upside. Without diversification, Paraguay’s trade imbalance will remain entrenched, exposing it to supply chain shocks and price volatility in critical electronics.

Strategic Moves

• Diversify Export Markets: Paraguay must reduce dependence on Mainland China by targeting Southeast Asia and the EU for chemical and base metal exports (HS 38, 74), leveraging preferential trade agreements.
• Upgrade Value Chains: Local manufacturers should partner with Chinese firms to move beyond raw material exports, co-developing intermediate goods (e.g., processed chemicals) to capture higher margins.
• Secure Tech Imports Strategically: Importers of Chinese machinery (HS 85) must lock in long-term contracts now to hedge against potential tariff shifts or logistics disruptions ahead of Lunar New Year.

Frequently Asked Questions

How did Paraguay - Mainland China trade perform in 2023 Q3?

Paraguay's exports to Mainland China totaled $4.04M in Q3 2023, with YoY declines across all months, while imports surged to $1.41B, driven by strong growth in July and September.

What are the top exports from Paraguay to Mainland China?

Chemical products (HS Code 38) dominate Paraguay's exports to Mainland China, accounting for 25.28% of total exports, followed by other raw materials and intermediates.

What does Paraguay import from Mainland China?

Paraguay primarily imports electrical machinery (HS Code 85) from Mainland China, making up 44.27% of total imports, reflecting a high dependency on technology and electronics.

What is the trade balance between Paraguay and Mainland China?

Paraguay recorded a trade deficit of ~$1.406B with Mainland China in Q3 2023, driven by heavy reliance on imports and minimal export traction.