Five Latin American leaders have decided to stay away from Paraguay's independence's day celebration due to Taiwan's participation to avoid upsetting China, Taiwanese media said Saturday.

The heads of Brazil, Chile, Ecuador, Surinam and Venezuela have cancelled their attendances, citing "various reasons", because Taiwan's Vice President Vincent Siew will be present, said the Taipei-based China Times.

"This has something to do with the countries abiding by the 'one-China' policy to avoid contact with Taiwan's high-ranking officials," the report said.

A Taiwanese delegation led by Siew arrived in Asuncion on Friday to attend the festivities, according to Taiwan's presidential office.

Paraguay is among only 23 nations that officially recognise Taiwan as independent from China, from which the island split in 1949 after a civil war.

But Beijing still claims sovereignty over the island under its "one-China" policy and opposes other countries establishing formal diplomatic ties with Taiwan.

Taiwan and China have in the past used "dollar diplomacy", offering generous financial packages to ensure the loyalty of governments, especially in Africa, Latin America and the Pacific.

Tensions have eased since Taiwan's President Ma Ying-jeou took office in 2008 on a Beijing-friendly platform.

However, Ma on Tuesday protested to China for allegedly pressuring the World Health Organisation into telling its officials to refer to the island as a Chinese province.

A foreign ministry spokesman was not immediately available to comment on the report.

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