China Plays Increasing Role in Venezuela’s Economy
In recent years, much attention has been focused on China’s increasingly influential role in various African countries and the country invests large sums of money in the continent. But China’s investments are building influence in other regions as well. The Miami Herald looks at the strong ties between Beijing and Venezuela:
Experts consulted and documents obtained by El Nuevo Herald break down Venezuela’s growing dependence on China’s financing and executive capacity, and how the Chávez administration’s hunger for resources has led it to grant concessions to Beijing that are unfavorable to the South American oil country.
Extending the red carpet to Beijing has allowed Chávez’s government to obtain nearly $80 billion in financing and direct foreign investment. Yet the leader of the Bolivarian Revolution is sacrificing sovereignty along the way, heavily mortgaging the industry under significantly more unfavorable terms than it is able to obtain in international markets, analysts said.
Ironically, these agreements, which translate into a revenue loss of billions of dollars, take place at a time when Venezuela should have no need to seek financing abroad.
Read more about China’s ties in South America.