Paraguay is the last South American country with formal relations with Taiwan, which China claims as its own territory. Honduras ended decades of ties in favour of Beijing this year and only 13 countries now recognise Taiwan.
"I predict that the era that is starting now in our bilateral relationship, we are determined to take it to places we never even imagined before," Pena said. Pena will take office on Aug. 15. Diplomatic sources have told Reuters that Taiwan's vice president, William Lai, might attend the inauguration, likely travelling via the United States to meet U.S. officials.
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