TAIPEI (Taiwan News) — Paraguay will not sever ties with Taiwan, Paraguay President Santiago Pena Palacios said in a recent interview last week while visiting the U.S.

Paraguay intends to maintain close trade relations with China, but it will not break diplomatic relations with Taiwan, Pena told Infobae.

When asked about his emphasis on industry rather than food exports and how Taiwan could assist, the president said he wasn't implying that food production is unimportant. Paraguay is already strong in this sector, he said, therefore, the focus should be on innovating and developing the nation’s technology.

Given Paraguay's geographic location, natural resources, and low occurrance of natural disasters, the country is well-suited for data storage centers and the associated tech service industry, which offers significant opportunities, Pena said. He indicated that advanced technology and cybersecurity fields are the way forward, rather than semiconductors.

Paraguay wants to replicate Taiwan's model, which involves creating a highly skilled workforce which can then generate infinite opportunities for the country, Pena said. Paraguay has a strong educational alliance with Taiwan and jointly established the Taiwan-Paraguay University of Technology in 2017 to nurture domestic talent, he said.

Commenting on China's development in South America, Pena said he was concerned about Beijing’s growing influence in the region given the vulnerabilities of many countries. Many nations choose to strengthen their relations with China out of desperation, without much expectation that China will bring excellent opportunities, he said, naming Venezuela and Argentina as two prime examples.

Prior to being sworn into office, Pena visited Taiwan in July, where he met with President Tsai Ing-wen. He pledged to stand with Taiwan over the next five years and said Paraguay “absolutely will not” compromise its values or shared ideals and goals. Paraguay is Taiwan's sole diplomatic ally in South America.