By Jorge Rosemond
With the recent troubles unfolding from the streets of Venezuela, one might think that every country around the world would want to try to help the people suffering there. However, China’s relationship with Venezuela is complicated and they are acting there for a few reasons, not all of them are helpful to United States’ interests or even to the Venezuelans.
China is in Venezuela to protect its own national investments. They have a lot of money invested there and they want to protect their sources for all kinds of raw materials like iron, copper and soy. China is the number two trading partner of Venezuela. The United States is by far the biggest trade partner.
Venezuela and other South American countries wanted to get away from their dependence on the U.S., and toward other countries, like China and India. Therefore, they started selling one of the world’s largest oil reserves to countries around the world, especially China. China lent over $55 billion to Venezuela for their guaranteed oil sales, but the amount of oil that was promised has never been produced.
China needs oil, and so their leaders have been supportive of the current Maduro regime in Venezuela. They think that they will get their oil eventually. Since China needs a lot of oil and Venezuela needs a lot of money, their relationship should be good for the foreseeable future. This arrangement is called “Complimentary Development”.
Now China is staying true to the Maduro regime, mostly to protect their own investments and not so much to help the people there. They are hoping that by riding this situation out that they will be able to get the reward of oil deals.
It is unfortunate that the people of Venezuela are caught in the middle of various countries trying to get access to their natural resources. Their own government should have the resources to help bring prosperity to the people. However, Maduro’s hold on power has prevented it.
Sources:
https://www.cnbc.com/2019/02/07/venezuela-china-and-russia-owed-debts-as-presidential-fight-rages.html
Ferchen, Matt. “Why Did China Stand By Maduro in Venezuela?” The Washington Post, February 5, 2019.
