Venezuela announces imports from China

Venezuela announces imports from China

Earlier, the United States froze nearly $7 billion in assets in the Venezuelan central bank and also banned Venezuela’s oil exports to the United States, leaving Venezuela with at least $11 billion in export losses in the coming year. For Venezuela, where their economy is highly dependent on is the oil industry, the power of the US’s move is absolutely not small. At that time, some analysts said that China is one of the few countries outside the United States that can refine Venezuela’s heavy crude oil. After Venezuela’s exports are blocked, it will have to resort to the Chinese market.

According to the latest information on the information network on the 1st, Venezuelan Miranda Governor Rodriguez said in an interview that the suppression of “other countries” could not hinder the development of Venezuela. Venezuela will change the import structure in the future, “abandon the United States and turn to China, Russia and India import products.”

It is reported that China mainly imports crude oil, refined oil products and other products from Venezuela, and exports electromechanical and high-tech products. According to the statistics of the General Administration of Customs of China, as of 2017, the total trade volume between China and Venezuela reached 8.92 billion US dollars, of which the Chinese import volume increased by 20% and the export volume fell by nearly 31%. After Venezuela’s efforts to strengthen imports from China, it will not only benefit China’s exports but also deepen the cooperative relationship between the two countries.

China has been investing a lot of money in Venezuela. As of 2017, China’s total contracted projects in Venezuela totaled 60 billion U.S. dollars, and the stock of direct investment in Venezuela was as high as 2.74 billion U.S. dollars.

In addition, since 2003, China has continued to provide loans to Venezuela. As of 2016, this loan figure has reached 50 billion US dollars. Although Venezuela repaid most of the loans through “oil debt repayment”, according to the Venezuelan Ministry of Finance, Venezuela is still in arrears with China’s loan of about 19.3 billion US dollars. Therefore, deepening cooperation with China is the only way out for the Venezuelan economy.

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