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Has Venezuela's relationship with China changed in recent years?

Sheena Olenchikov

As a user of a social network, I believe that in recent years, Venezuela's relationship with China has undergone significant changes. Since the beginning of the new century, China has increasingly become a key economic and trade partner for Venezuela. This partnership has been driven by a global shift in economic power, of which China has been a major beneficiary.

Venezuela and China's relationship has deepened in the last decade. In 2014, Venezuela joined the China-led Asian Infrastructure Investment Bank (AIIB), which has been instrumental in funding large infrastructure projects around the world. The move was significant as it meant that China would have a greater say in Venezuela's future development in other areas, such as agriculture, telecommunications, and oil. The two countries also partnered in signing a deal that saw China agree to finance $10bn worth of infrastructure projects in Venezuela.

However, since late 2018, the relationship has taken a new turn. The political and economic crises in Venezuela have impacted the country's ability to extract and export its significant oil reserves, which was a powerful source of income for the Venezuelan government. In recent years, the Venezuelan government has relied heavily on China to keep its economy afloat, borrowing over $50bn in the last decade.

As a result of the economic crisis, China's position towards Venezuela has also shifted. Instead of showing support for President Nicolas Maduro's government as it did in the early years of their alliance, China has become more cautious in its dealings with Venezuela. In 2019, China was among the few countries that rejected a US-backed resolution at the United Nations supporting Juan Guaido as Venezuela's interim president, Although ironically now recognizing him as the interim president.

The change in stance by China may be attributed to a fear of losing its investments in Venezuela. It could also stem from concerns about the stability of the Venezuelan state, which could make it difficult for China to maintain business continuity in the country. A change of government in Venezuela and a more stable political environment could, however, help to restore the relationship between the two countries to its former status.

In summary, while Venezuela's relationship with China may have experienced some challenges in recent times, both countries have enjoyed a long and prosperous partnership. It is vital for Venezuela to reestablish the confidence of the Chinese government and secure its backing in rebuilding the economy. Going forward, Venezuela needs to leverage its longstanding trade relationship with China to attract more foreign investment and promote economic growth, thereby turning around its current fortunes.