Paraguay - Mainland China Trade 2024 Q2: Deficit-Driven Exchange

Key Market Takeaways: Paraguay - Mainland China Trade

The bilateral trade relationship between Paraguay and Mainland China is marked by heavy reliance on Chinese imports and minimal export traction in Q2 2024.

• Deficit-Driven Trade: Paraguay posted a $1.35B trade deficit, with imports ($1.36B) dwarfing exports ($5.48M). Volatility hit both sides, with exports plunging YoY and imports showing mixed performance.
• Resource-for-Tech Exchange: Paraguay - Mainland China trade statistics reveal a lopsided structure: raw materials (wood, copper) make up 70% of Paraguay’s exports, while China supplies critical machinery (42% of imports).
• Asymmetric Interdependence: The partnership is economically complementary but unequal—China holds the high-value position, while Paraguay remains a raw material supplier.

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

Paraguay-Mainland China Trade Trend in Q2 2024

Paraguay Export Performance: Shipments to Mainland China

• Total Volume: Exports totaled $5.48M in Q2 2024.
• Growth Trend & Context:
  • YoY declines persisted across all months, with May (-42.26%) showing the sharpest drop.
  • No mitigating news to explain the contraction.
• Key Volatility: May saw a 13.52% MoM rebound, but June plummeted -32.41% MoM.

Paraguay Import Performance: Sourcing from Mainland China

• Total Volume: Imports reached $1.36B in Q2 2024.
• Growth Trend & Context:
  • Mixed YoY performance: April (+26.87%) surged, but June (-4.26%) dipped.
• Key Volatility: June imports crashed -19.43% MoM after May’s modest 2.92% gain.

Paraguay - Mainland China Trade Balance & Market Dynamics

• Net Position: Trade deficit of ~$1.35B (Imports dwarfed exports).
• Relationship Status: Heavy reliance on Chinese imports, with minimal export traction.

Paraguay Import Trend from Mainland China 2024 Q2 (Source: yTrade)**

Paraguay Export Trend to Mainland China 2024 Q2 (Source: yTrade)**

Get Historical Paraguay Mainland China Trade Records

Paraguay-Mainland China Top Trading Products in Q2 2024

Paraguay Export Profile: What Does Paraguay Sell to Mainland China

• Top Commodity: Rank #1 Export is HS Code 44 (Wood and articles of wood), accounting for 29.62% of total exports to Mainland China.
• Demand Driver: Mainland China imports raw materials like wood (HS 44) and copper (HS 74) for industrial processing, reflecting its demand for intermediate goods.
• Concentration: The top 3 exports (HS 44, 74, 41) make up 69.69% of total exports, indicating high trade concentration in raw materials.

Paraguay Import Profile: What Does Paraguay Buy from Mainland China

• Top Commodity: Rank #1 Import is HS Code 85 (Electrical machinery and equipment), representing 41.63% of total imports from Mainland China.
• Dependency Nature: Paraguay relies heavily on Mainland China for high-tech machinery (HS 85, 84) and industrial components, highlighting critical technology dependency.

Paraguay - Mainland China Trade Relationship Dynamics

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

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 likely to remain volatile in the near term, with Paraguay’s export decline persisting due to weak demand for raw materials and structural overreliance on a few commodities. Mainland China’s import slowdown in June signals potential softening in industrial demand, which could further pressure Paraguay’s wood and copper shipments. However, Paraguay’s heavy dependence on Chinese machinery and electronics ensures imports will stay elevated, widening the trade deficit. Traders should brace for continued asymmetry, with export recovery contingent on diversification beyond primary goods.

Strategic Moves

• Diversify Export Markets: Paraguayan exporters must reduce reliance on Mainland China by targeting alternative buyers in Southeast Asia or India for wood (HS 44) and copper (HS 74) to mitigate demand shocks.
• Lock in Supply Contracts: Importers of Chinese machinery (HS 85) should negotiate long-term agreements to hedge against price volatility and potential supply chain disruptions.
• Upgrade Value-Added Exports: Paraguay should incentivize processing of raw materials (e.g., finished wood products) to capture higher margins and reduce vulnerability to commodity price swings.

Frequently Asked Questions

How did Paraguay - Mainland China trade perform in 2024 Q2?

Paraguay's exports to Mainland China totaled $5.48M in Q2 2024, with persistent YoY declines, while imports reached $1.36B, showing mixed YoY growth.

What are the top exports from Paraguay to Mainland China?

The top exports are wood and articles of wood (HS 44), copper (HS 74), and hides (HS 41), accounting for 69.69% of total exports.

What does Paraguay import from Mainland China?

Paraguay primarily imports electrical machinery and equipment (HS 85), representing 41.63% of total imports, alongside other high-tech machinery and industrial components.

What is the trade balance between Paraguay and Mainland China?

Paraguay recorded a trade deficit of ~$1.35B in Q2 2024, with imports from Mainland China far exceeding exports.