Paraguay - Mainland China Trade 2023 Q4: Deficit-Driven Exchange

Key Market Takeaways: Paraguay - Mainland China Trade

The bilateral trade relationship between Paraguay and Mainland China is marked by volatile growth and extreme asymmetry in 2023 Q4.

• Deficit-Driven Trade: Paraguay’s $1.49B trade deficit reflects a 349x import dominance, with Chinese imports ($1.49B) dwarfing exports ($4.27M).
• Resource-for-Tech Exchange: Paraguay - Mainland China trade statistics show a lopsided structure: raw materials (copper, hides) flow east, while high-value tech (electrical machinery) floods back.
• One-Sided Dependency: Paraguay’s role as a commodity supplier locks it into a low-value position, while China controls critical industrial inputs.

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

Paraguay-Mainland China Trade Trend in Q4 2023

Paraguay Export Performance: Shipments to Mainland China

• Total Volume: $4.27M in Q4 2023.
• Growth Trend & Context:
  • YoY growth was volatile, with November (+121.59%) and December (+66.99%) showing strong rebounds after a weak October (-17.66%).
• Key Volatility: November saw the sharpest MoM jump (+23.37%), while October had the steepest decline (-21.56%).

Paraguay Import Performance: Sourcing from Mainland China

• Total Volume: $1.49B in Q4 2023.
• Growth Trend & Context:
  • YoY growth was robust, peaking in December (+53.17%) despite a slowdown in November (+7.67%).
• Key Volatility: December recorded the highest MoM surge (+21.27%), while November had the sharpest drop (-9.7%).

Paraguay - Mainland China Trade Balance & Market Dynamics

• Net Position: Trade deficit of ~$1.49B (Imports dwarfed exports by 349x).
• Relationship Status: Paraguay remains heavily dependent on Chinese imports, with minimal export leverage.

Paraguay Import Trend from Mainland China 2023 Q4 (Source: yTrade)**

Paraguay Export Trend to Mainland China 2023 Q4 (Source: yTrade)**

Get Historical Paraguay Mainland China Trade Records

Paraguay-Mainland China Top Trading Products in Q4 2023

Paraguay Export Profile: What Does Paraguay Sell to Mainland China

• Top Commodity: HS Code 74 (Copper and articles thereof) dominates with 31.44% share.
• Demand Driver: Mainland China uses these raw materials for industrial processing, likely in electronics and construction sectors.
• Concentration: The top 3 exports (HS 74, 41, 76) account for 68.92% of total exports, indicating high reliance on a few commodity categories.

Paraguay Import Profile: What Does Paraguay Buy from Mainland China

• Top Commodity: HS Code 85 (Electrical machinery and equipment) leads with 48.34% share.
• Dependency Nature: Critical technology dependency, as these imports likely power Paraguay’s industrial and consumer electronics sectors.

Paraguay - Mainland China Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (copper, hides, aluminum) while importing high-value tech (electrical machinery, industrial equipment).
• Value Chain Position: Mainland China holds the higher value-add position, supplying finished goods, while Paraguay remains a supplier of primary 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

The Paraguay-Mainland China trade relationship is poised for continued growth in 2024, driven by China’s insatiable demand for raw materials and Paraguay’s reliance on high-value tech imports. However, Paraguay’s export volatility—marked by sharp monthly swings—suggests traders should brace for price fluctuations, particularly in copper (HS 74) and other commodity-driven shipments. With China’s industrial sector showing resilience, Paraguay’s trade deficit will likely persist, but strategic diversification and value-added processing could gradually rebalance the scales.

Strategic Moves

• Lock in Commodity Prices: Paraguayan copper and aluminum exporters should secure long-term contracts with Chinese buyers to mitigate price volatility and stabilize revenue streams.
• Diversify Import Sources: Paraguayan importers of electrical machinery (HS 85) must explore alternative suppliers in Southeast Asia or Latin America to reduce overreliance on Chinese tech imports.
• Upgrade Export Value Chains: Paraguay should incentivize local processing of raw materials (e.g., refining copper domestically) to capture more value before shipping to China, narrowing the trade deficit over time.

Frequently Asked Questions

How did Paraguay - Mainland China trade perform in 2023 Q4?

Paraguay exported $4.27M to Mainland China, with volatile YoY growth, while imports surged to $1.49B, driven by strong December performance.

What are the top exports from Paraguay to Mainland China?

Copper and articles thereof (HS 74) dominate, followed by hides (HS 41) and aluminum (HS 76), accounting for 68.92% of total exports.

What does Paraguay import from Mainland China?

Electrical machinery and equipment (HS 85) lead imports with a 48.34% share, reflecting Paraguay’s reliance on Chinese technology.

What is the trade balance between Paraguay and Mainland China?

Paraguay faced a trade deficit of ~$1.49B, with imports exceeding exports by 349x, highlighting heavy dependency on Chinese goods.