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

    Hope Remains for Rio Olympic Games

    Facing a host of problems, Rio prepares for holding the games but experts say some risks, like Zika, may not be as grave as initially thought

    IS Use of Social Media to Recruit, Radicalize Still a Top Threat to US

    Despite military gains against IS in Iraq and Syria, their internet propaganda still commands an audience; US officials see 'the most complex challenge that the federal government and industry face'

    ‘Time Is Now’ to Save Africa’s Animals From Poachers, Activist Says

    During Zimbabwe visit, African Wildlife Foundation President Kaddu Sebunya says poaching hurts Africa as slave trade once did

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Ivorian Chocolate Makers Promote Locally-made Chocolatei
    X
    July 29, 2016 4:02 PM
    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Ivorian Chocolate Makers Promote Locally-made Chocolate

    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Tesla Opens Battery-Producing Gigafactory

    Two years after starting to produce electric cars, U.S. car maker Tesla Motors has opened the first part of its huge battery manufacturing plant, which will eventually cover more than a square kilometer. Situated close to Reno, Nevada, the so-called Gigafactory will eventually produce more lithium-ion batteries than were made worldwide in 2013. VOA's George Putic reports.
    Video

    Video Polio-affected Afghan Student Fulfilling Her Dreams in America

    Afghanistan is one of only two countries in the world where children still get infected by polio. The other is Pakistan. Mahbooba Akhtarzada who is from Afghanistan, was disabled by polio, but has managed to overcome the obstacles caused by this crippling disease. VOA's Zheela Nasari caught up with Akhtarzada and brings us this report narrated by Bronwyn Benito.
    Video

    Video Hillary Clinton Promises to Build a 'Better Tomorrow'

    Democratic presidential candidate Hillary Clinton urged voters Thursday not to give in to the politics of fear. She vowed to unite the country and move it forward if elected in November. Clinton formally accepted the Democratic Party's nomination at its national convention in Philadelphia. VOA national correspondent Jim Malone has more.
    Video

    Video Trump Tones Down Praise for Russia

    Republican presidential candidate Donald Trump is toning down his compliments for Russia and Vladimir Putin as such rhetoric got him in trouble recently. After calling on Russia to find 30.000 missing emails from rival Hillary Clinton, Trump told reporters he doesn't know Putin and never called him a great leader, just one who's better than President Barack Obama. Putin has welcomed Trump's overtures, but, as Zlatica Hoke reports, ordinary Russians say they are not putting much faith in Trump.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.

    Special Report

    Adrift The Invisible African Diaspora

    More Americas News

    Uruguay Formally Ends its Presidency of Mercosur Trade Bloc

    Ministry statement said there are no legal arguments for blocking transfer of presidency to Venezuela, it stopped short of announcing that Venezuela would now lead South American group

    Court: Brazil's Lula to Stand Trial for Obstruction of Justice

    Brazil's ex-president officially a defendant in sprawling corruption probe focused on state-run oil company Petrobras

    Australian Olympic Team Evacuated for Dorm Fire

    Small fire in basement of team living quarters caused no injuries; quality of Olympic housing for athletes sparks complaints

    Hope Remains for Rio Olympic Games

    Facing a host of problems, Rio prepares for holding the games but experts say some risks, like Zika, may not be as grave as initially thought

    Cambodian-American Swimmer to Compete at Rio 2016

    Brown University student said he hopes to break his previous record for the men's 100-meter freestyle at Olympic Games

    Venezuela's Opposition-run Congress Defies Government Over Ban

    Conflict of powers heightened when three lawmakers facing fraud accusations were reinstated Thursday