From oil to infrastructure, why China has plenty to lose from political turmoil in Venezuela
- Caracas needs Chinese loans and investment in various sectors, but the relationship offers mutual benefits
- Instability and a struggling economy in the South American country have already cost Beijing dearly
Venezuela’s political crisis appears to be reaching boiling point, with opposition leader Juan Guaido and President Nicolas Maduro each backed by different world powers.
Maduro, who has been in power for six years, claimed victory in a presidential election last May that was called invalid by his rivals after he barred opponents from running and drew a 46.7 per cent turnout, the lowest in the country’s democratic era.
Guaido, the president of the legislature, declared himself interim president on January 23 and has promised to call elections. Following US President Donald Trump, European countries have recognised him as de facto head of state, heightening international pressure on the troubled country.
But despite overseeing an economic collapse and the exodus of millions of Venezuelans, Maduro retains the critical support of the military and the powerful backing of Russia, China and Turkey.
As Venezuela’s biggest creditor, China is bound to be affected by the outcome.