The recent US capture of Venezuelan President Nicolas Maduro has sparked concerns about how the ensuing political turmoil might impact China’s substantial economic stakes in the country. China stands as Venezuela’s primary creditor and the largest purchaser of its oil, responsible for over 80% of the nation’s crude exports, as per a recent report.
Before his apprehension by the US, Maduro held discussions with Qiu Xiaoqi, China’s special envoy for Latin American Affairs, at the Miraflores Presidential Palace. The bond between Beijing and Caracas was described by Maduro as a resilient and successful partnership, always prevailing and advancing at full throttle, as reported by The Straits Times.
In 2023, Venezuela and China upgraded their bilateral ties to an “all-weather strategic partnership” during a meeting between Maduro and President Xi Jinping in Beijing. This designation, exclusive to Venezuela in Latin America, signifies a deep-rooted political trust and mutual backing on global matters, emphasized in the report.
The current political crisis instigated by the US has raised apprehensions in China regarding the potential repercussions on its investments in Venezuela, particularly under President Xi Jinping’s Belt and Road Initiative, which encompasses significant ventures in mining and infrastructure. Bilateral trade in goods surged to $6.4 billion in 2024, marking a substantial 52.5% annual rise.
Reports indicate that Venezuela owes China nearly $12 billion under an oil-for-loans scheme facilitated by the China Development Bank, constituting the largest single-country commodity-backed debt within Beijing’s $60 billion portfolio extended since 2007. Last year, China Concord Resources Corp inked a rare 20-year agreement to develop two Venezuelan oilfields, with a projected investment of $1 billion.
China’s Foreign Ministry has expressed grave concerns over Maduro’s detention by the US, condemning it as a breach of international law and fundamental norms governing global relations. The ministry has urged the US to ensure the safety of Maduro and his spouse, release them promptly, halt attempts to destabilize the Venezuelan government, and seek resolution through dialogue and negotiation.
