Paraguay - Mainland China Trade 2024 Q1: Deficit & Tech Dependence

Key Market Takeaways: Paraguay - Mainland China Trade

The bilateral trade relationship between Paraguay and Mainland China is marked by extreme import dependency and volatile export growth in Q1 2024.

• Deficit Dominance: Paraguay runs a $1.33B trade deficit with Mainland China, driven by $1.34B in imports (mostly electronics) versus just $7.9M in exports.
• Resource-for-Tech Exchange: Paraguay’s exports are 60% wood products (HS 44), while imports are 44% electrical machinery (HS 85), reflecting a classic raw-materials-for-manufactured-goods dynamic.
• Asymmetric Reliance: Mainland China holds structural leverage as Paraguay’s critical supplier of high-tech goods, with minimal export diversification.

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

Paraguay-Mainland China Trade Trend in Q1 2024

Paraguay Export Performance: Shipments to Mainland China

• Total Volume: $7.90M in Q1 2024.
• Growth Trend & Context:
  • YoY growth was volatile: +56.93% in January, +304.76% in February, then -5.83% in March.
  • February’s 251% MoM surge and 304.76% YoY spike dominated the quarter.
• Key Volatility: February’s exports ($3.60M) were the peak, while January ($1.02M) saw a -37.16% MoM drop.

Paraguay Import Performance: Sourcing from Mainland China

• Total Volume: $1.34B in Q1 2024.
• Growth Trend & Context:
  • YoY growth flipped from +13.25% in January to -3.62% in March.
  • February’s near-flat YoY (+0.79%) masked a -29.88% MoM collapse.
• Key Volatility: February’s imports ($371.13M) were the lowest, while January ($529.29M) led the quarter.

Paraguay - Mainland China Trade Balance & Market Dynamics

• Net Position: Trade Deficit of $1.332B (Imports $1.34B > Exports $7.90M).
• Relationship Status: Paraguay remains heavily import-dependent on Mainland China, with exports negligible by comparison.

Paraguay Import Trend from Mainland China 2024 Q1 (Source: yTrade)**

Paraguay Export Trend to Mainland China 2024 Q1 (Source: yTrade)**

Get Historical Paraguay Mainland China Trade Records

Paraguay-Mainland China Top Trading Products in Q1 2024

Paraguay Export Profile: What Does Paraguay Sell to Mainland China

• Top Commodity: Rank #1 Export is HS 44 (Wood and articles of wood) at 60.15% of total exports.
• Demand Driver: Mainland China imports these raw materials for industrial processing, likely for construction or manufacturing.
• Concentration: Trade is highly concentrated, with wood products dominating over 60% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Mainland China

• Top Commodity: Rank #1 Import is HS 85 (Electrical machinery and equipment) at 43.80% of total imports.
• Dependency Nature: Critical technology dependency, as Paraguay relies on Mainland China for high-tech manufacturing inputs.

Paraguay - Mainland China Trade Relationship Dynamics

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

Paraguay’s trade with Mainland China in Q1 2024 revealed stark volatility, with exports surging in February before retreating in March, while imports showed inconsistent YoY growth. Given the structural reliance on raw material exports (wood) and high-tech imports (electrical machinery), the trade deficit of $1.332B is unlikely to narrow in the near term. However, if Paraguay capitalizes on Mainland China’s sustained demand for industrial inputs, export volumes could stabilize or grow modestly by year-end. Traders should brace for continued import dependency but monitor potential shifts in commodity demand or supply chain disruptions.

Strategic Moves

• Diversify Export Markets: Paraguay’s overreliance on wood exports (60.15% of total) leaves it vulnerable to demand shocks. Exporters must aggressively target secondary markets in Southeast Asia or Europe to reduce concentration risk.
• Lock in Tech Import Contracts: With Mainland China dominating Paraguay’s high-tech supply chain (43.80% of imports), importers should negotiate long-term agreements to hedge against price volatility and potential trade policy shifts.
• Invest in Value-Added Processing: Paraguay’s raw material exports fetch minimal value compared to finished goods. The government and private sector must prioritize local processing capabilities (e.g., wood products, refined metals) to capture higher margins before export.

Frequently Asked Questions

How did Paraguay - Mainland China trade perform in 2024 Q1?

Paraguay exported $7.90M to Mainland China, with volatile YoY growth, while imports totaled $1.34B, showing mixed YoY trends.

What are the top exports from Paraguay to Mainland China?

The top export is HS 44 (Wood and articles of wood), accounting for 60.15% of total exports.

What does Paraguay import from Mainland China?

The top import is HS 85 (Electrical machinery and equipment), making up 43.80% of total imports.

What is the trade balance between Paraguay and Mainland China?

Paraguay recorded a trade deficit of $1.332B, as imports ($1.34B) far exceeded exports ($7.90M).