History of Paraguay its capital, and Río de la Plata, with headquarters in Buenos Aires. With this decision, Asunción lost control of the Río de la Plata estuary and became dependent on Buenos Aires for maritime shipping. In 1776, the crown created the Viceroyalty of Río de la Plata; Paraguay, which had been subordinate to Lima, now became a provincial outpost of Buenos Aires. Located at the periphery of the empire, Paraguay served as a buffer state. The Portuguese blocked Paraguayan territorial expansion in the north, native tribes blocked it – until their expulsion – in the south, and the Jesuits blocked it
Foreign relations of Paraguay and international relations of Paraguay are officially handled by the Ministry of Foreign Relations, which answers to the executive branch of the government. The current Minister of Foreign Relations as of 2018 is Luis Alberto Castiglioni Unlike any other country in South America, Paraguay recognizes the Republic of China instead of the People's Republic of China. Although not a particularly large country in absolute terms, Paraguay presently is the largest country maintaining official diplomatic relations with the Republic of China. Paraguay is a member of the following international organizations: CAN (associate), FAO, G-11, G-77, IADB, IAEA, IBRD (also known as