The Chinese-Venezuelan Pivot

By: Daniel Nardini

                                Lawndale News Chicago's Bilingual Newspaper - Commentary   Venezuelan President Nicolas Maduro recently visited China on a major state visit to further China-Venezuela relations. With relations all but broken between the United States and Venezuela, Maduro needs all of the allies he can get—even if he has to go halfway around the world to do it. Even though Maduro sees China as an ideological ally, the growing China-Venezuela relationship has a far more practical side to it.
                                        The main thing Maduro wants from the Chinese is investments. Already the Chinese government has invested U.S. $ 12 billion into developing Venezuela’s mineral wealth such as gold, silver and iron ore. To further Venezuela’s development, Maduro and Chinese President Xi Jinping signed an agreement whereby the Chinese government will invest $28 billion in upgrading Venezuela’s oil industry. Since the former Venezuelan President Hugo Chavez nationalized the country’s oil industry, the production of oil fell from 3.5 million barrels per day to 2.7 million barrels of oil per day. A lot of the equipment Venezuela needs to upgrade its oil pump facilities came from the United States. Hence, why Maduro is seeking China’s help in upgrading Venezuela’s oil industry.
 But Maduro needs China for more than just this—he needs massive Chinese investment to prevent his economy from collapsing. Venezuela’s currency reserves are exhausted. The average Venezuelan now faces shortages of even basic items like rice, beans, milk and flour, and even toilet paper. China has the largest cash reserves in the world, and why Maduro desperately needs China’s help. The relationship for China is just as favorable. Venezuela is a springboard for spreading more Chinese influence throughout South America. After the disclosures of NSA (National Security Agency) espionage by defector Edward Snowden, it is fair to say that this may be an opening for more Chinese investment and influence in the region. And the relationship between China and Venezuela is the pivot for this.

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