China Faces Strategic Setback After US Actions in Venezuela

(MENAFN) Venezuela, where the United States apprehended the president through a military operation, was one of the nations with which China had cultivated strong relations in Latin America and the Caribbean, offering financial assistance to counter Washington’s restrictions.

After the American incursion, the handover of Venezuelan petroleum to Washington’s authority signifies not only a reduction in China’s economic stakes but also the forfeiture of a crucial position in the worldwide struggle for influence.

The U.S. military action on Jan. 3, which captured Venezuelan leader Nicolas Maduro and his spouse, generated instability regarding the utilization of the nation’s economic assets, especially oil, and provoked pressing concerns about the future of China’s diplomatic sway and commercial interests in Venezuela.

Before the intervention, China, the leading purchaser of Venezuelan crude, extended billions of dollars in loans under oil-for-credit schemes while enhancing political ties to a “strategic partnership under all circumstances.”

China was among the states whose political and financial connections with Venezuela expanded most swiftly under U.S. sanctions. During this era, Caracas, receiving substantial backing from Beijing, shipped a significant share of its petroleum to China in return for debt alleviation and credit.

Venezuela possesses the globe’s largest verified oil reserves, estimated at 303 billion barrels, representing nearly 17% of worldwide confirmed reserves.

The nation, which produced 3.5 million barrels of crude daily in the 1970s, witnessed its daily production decline to 1.1 million barrels last year due to governance deficiencies, insufficient infrastructure investment, and the consequences of sanctions.

During this time, Venezuela’s portion of global oil output decreased from 7% to 1%.

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