China’s Oil Deal With Venezuela Faces Turning Point
The New York Times••nation
Key Points:
- In the early 2000s, China and Venezuela formed a major oil-for-financing partnership, with China providing over $100 billion in loans in exchange for Venezuelan oil to fuel its economic growth.
- Venezuela used Chinese funds to build infrastructure such as railways and power plants, while repaying the debt primarily with oil shipments.
- Currently, Venezuela still owes China approximately $10 billion, but the partnership faces uncertainty following the ouster of Venezuelan leader Nicolás Maduro.
- China has ceased new loans to Venezuela and is less dependent on both Venezuelan oil and oil imports overall, complicating the future of their economic ties.
