News / Americas

Chavez Death Could Impact Trade, Diplomatic Ties With China

Shannon Van Sant
Venezuela is an increasingly important source of fuel for China, and the death of Hugo Chavez may impact trade and diplomatic ties between the two countries. 

China’s thirst for natural resources and Venezuela’s need for loans has drawn the two countries together in recent years.  China’s Foreign Ministry spokesperson Hua Chunying expressed condolences following the death of Chavez.  
 
Hua said President Chavez was a great leader and good friend of the Chinese people who made significant contributions to Sino-Venezuelan relations.  
 
China had forged a close relationship with the outspoken socialist leader and is Venezuela’s second largest trade partner.  China has also become the single biggest source for foreign financing for the Venezuelan government.  In turn Venezuela exports half a million barrels of oil a day to China and says it plans to double its oil exports to China by 2015. 

“China finds itself having built up a relationship essentially with this very powerful one man leader," said Matt Ferchen, a resident scholar at the Carnegie-Tsinghua Center for Global Policy. "And now that that person is gone, everything is thrown into disarray.”

The state-run China Development Bank, which gives credit lines to many countries around the world, has spearheaded China’s investment in Venezuela.  Venezuela has been repaying the $36 billion in loans from China with oil, becoming the fourth largest source of oil for China after Saudi Arabia, Angola and Russia. 

Ferchen says the China Development Bank seized an opportunity.

“I see it basically as the China Development Bank having for a variety of reasons gone head first into Venezuela without really any political intentions but being very happy to have had the door opened for them by Chavez,” he said.

The post-Chavez leadership of Venezuela could change these loans-for-oil deals with ramifications for both countries, though Ferchen believes Venezuela’s next leaders will likely maintain the status quo.

“I am less pessimistic about that.  I think that China, the China Development Bank and some of the other state owned enterprises that are there have done a fairly thorough job of  limiting their exposure to any sort of change in the actual deals,” Ferchen stated.  
 
China’s investment throughout Latin America has surged to more than $10 billion.  Much of that investment is focused on natural resource extraction.  Last year Chinese officials with the country’s National Development and Reform Commission said the China-Latin America relationship will become even more crucial over time.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid

More Americas News

Canadian Authorities Seek More Power to Thwart Terror Suspects

Canada's PM Harper he'll press for speedy OK to track terror suspects abroad, and to detain people in the country suspected of plotting attacks
More

Brazilians Set to Choose New President

President Dilma Rousseff and Senator Aecio Neves face each other in weekend runoff
More

FARC Rebel Gets 27 Years in US Prison for Hostage-Taking

Alexander Beltran Herrera responsible for kidnapping three Americans whose plane crash-landed in Colombia
More

Canadian Shooter's Mother ‘Mad’ at Son

Michael Zehaf-Bibeau's mother, Susan told the Associated Press part of her 'wants to hate' her estranged son, who killed a soldier in Ottawa
More

Canadian Couple Accused of Spying in China Held in Near Isolation

Treatment of the couple, who are being held without charge at a remote facility in the border city of Dandong, has seriously strained China's ties with Canada
More

Mexico Governor Resigns After Student Disappearances

Students from a rural teachers training college went missing after a confrontation with police in the town of Iguala on September 26
More