What assets does China have in Venezuela, and what could happen with Maduro gone?
US move calls into question China’s future financial commitments in Latin American country, potentially hurting Beijing’s regional strategy
Amid prolonged international sanctions imposed on Venezuela, Chinese enterprises stood out as some of the few willing to pour resources into the South American country’s turbulent economy.
In this explainer, we examine the portfolio of Chinese assets in Venezuela and how they might stand to be affected by a US takeover.
What investments does China have in Venezuela?
Energy projects form the bedrock of China’s presence in the country, with state-owned giant China National Petroleum Corporation (CNPC) operating several key joint ventures.
Venezuela holds what is recognised as the world’s largest proven oil reserves, primarily in the central Orinoco Belt, located in the East Venezuela Basin along the Orinoco River.
PetroSinovensa, a joint venture established in 2008 by CNPC and Venezuela’s state-owned PDVSA, develops the extra-heavy crude of this territory – a significant portion of which is shipped directly to China to service Venezuela’s sovereign debt.
And while new state-led investments slowed during the height of US sanctions, with the stock of investment from China declining in the past few years, some private-sector initiatives continued to forge ahead.
What does Maduro’s removal mean for Chinese investments in Venezuela?