In 2007 significant political changes took place in Paraguay.In this process the ruling Colorado party was faced with severe challenges from the opposition，which had nominated its candidate for the 2008 presidential election. By implementing forceful reforms，the government had succeeded in curbing inflation and reviving the economy.In the social area，however，poverty and unemployment rates still stood high.Paraguay’s relations with the Chinese province of Taiwan and countries in Latin America，Europe and other regions improved more or less in that year.