Taiwan's importance extends far beyond its size. The island occupies a central position in global semiconductor supply chains. It also remains one of the world's most geopolitically sensitive hotspots. 

Regional context 

Beijing considers Taiwan part of China, while the island governs itself and rejects this claim. Despite not maintaining formal diplomatic relations with Taipei, the United States remains its main international ally. 

Furthermore, only 12 countries maintain official diplomatic relations with Taiwan. Two of them, Paraguay and Belize, have attracted attention this week. 

On October 12, China imposed sanctions on Paraguay's Minister of Information and Communication Technologies (MITIC), Gustavo Villate, and Belize's Minister of Foreign Affairs, Francis Fonseca. These measures restrict travel to China and business dealings with Chinese entities for Paraguayan and Belizean officials, rather than targeting their respective governments. 

The sanctions follow both countries' reaffirmation of their relations with Taiwan. Washington also criticized Beijing's actions, describing them as a form of pressure against nations exercising their sovereign right to choose their diplomatic partners. 

For Latin America, this episode serves as a reminder that even relatively small countries can occupy strategically important positions in the competition between major powers. For companies operating in the region, it highlights an increasingly evident reality: geopolitical risk is no longer limited to major powers. Diplomatic decisions can trigger political pressure, affect trade relations, and transform the operating environment. 

LATAM at a Glance 

• English: this language is an official language in Belize, the only country in Central America where this is the case. 

• Guaraní: in Paraguay, a large part of the population speaks this language in addition to Spanish. 

• River system: although Paraguay has no direct access to the sea, it is connected to the Atlantic Ocean through the Paraguay–Paraná Waterway. 

• A small country, a vast reef: the Belize Barrier Reef is part of the Mesoamerican Reef System, the second-largest barrier reef system in the world. 

• Power generation: Paraguay generates almost all its electricity from hydropower and exports the surplus to neighboring countries. 

The volatility of global geopolitics makes it essential to anticipate potential abrupt changes in national policies across Latin America and the Caribbean, particularly during a period marked by several changes of government. Auxadi supports the international expansion of multinational groups through its hubs in Madrid and Miami. 

LATAM Days Miami, November 10 

On November 10, Auxadi will host LATAM Days Miami, an event for CFOs of international companies looking to enter the Latin American market. Interested in attending? 

For more information, click here. 

About Auxadi

With 26 subsidiaries across Europe, the United States, and Latin America, Auxadi is today the leading Spanish accounting firm serving multinational companies and real estate investment funds. Through its technology-driven approach and strong client-focused culture, Auxadi acts as an extension of its clients' finance departments worldwide, providing accounting, tax, payroll, transfer pricing, and corporate legal services.

Its proprietary MySPV technology platform, more than 300 employees, and over 1,700 clients have positioned Auxadi as a benchmark in the tech-enabled services sector, not only in Spain but internationally.

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.