U.S. Venezuela Intervention Threatens China's Economic Interests
Washington's January 3 military operation, which also apprehended Maduro's wife, has created profound uncertainty surrounding Venezuela's economic resources—particularly its petroleum sector—while casting doubt on Beijing's political leverage and financial interests in the country.
Before the intervention, China stood as Venezuela's most vital oil purchaser, channeling billions through oil-for-credit arrangements while forging what both nations termed a "strategic partnership under all circumstances."
Beijing emerged as one of the principal beneficiaries of deepening ties with Caracas during the US sanctions era. Throughout this period, Venezuela shipped substantial oil volumes to China in exchange for debt forgiveness and financial credit.
Venezuela possesses the planet's largest confirmed oil reserves at 303 billion barrels—roughly 17% of worldwide proven deposits. However, daily production plummeted from 3.5 million barrels in the 1970s to just 1.1 million barrels last year, caused by governance failures, infrastructure neglect, and sanctions impact. The nation's global production share collapsed from 7% to merely 1%.
Under US sanctions, China imported an estimated 300,000 to 470,000 barrels daily from Venezuela.
According to Petroleos de Venezuela s.a. (PDVSA) data, the country exported 952,000 barrels daily in November, before Washington imposed a military blockade starting December 2025. Of that total, 778,000 barrels flowed to China—representing an 81.7% share of Venezuelan oil exports.
For China, the world's largest oil importer, Venezuelan crude comprises approximately 4% of total imports, with most supplies originating from the Middle East and Russia. Sanctioned Venezuelan oil bypasses official Chinese import statistics, reportedly entering through indirect channels and other nations.
Major Chinese state oil companies avoid processing Venezuelan crude due to sanctions exposure, while smaller independent "teapot" refiners—predominantly based in Shandong province along the Yellow Sea—handle the supply, according to multiple news reports.
China rejects US sanctions, characterizing them as "illegal, unjustifiable and unilateral" and as well as an overreach of jurisdiction by the US.
Chinese firms remain among the few foreign entities operating in Venezuela's oil sector. The American Enterprise Institute reports China invested $2.1 billion in Venezuelan oil infrastructure since 2016.
Morgan Stanley data reveal China National Petroleum Corporation (CNPC) controls consortium stakes covering 1.6 billion barrels, while China Petroleum & Chemical Corporation (Sinopec) holds stakes encompassing 2.8 billion barrels. Several Chinese private enterprises maintain large-scale extraction operations.
AidData, a US-based research organization, calculates China supplied Venezuela with $106 billion in loans, debt, and capital investments between 2000 and 2023.
The China Development Bank alone provided $60 billion through oil-for-credit programs initiated in 2007, enabling Venezuela to access oil revenues outside the petrodollar system.
Venezuela currently owes China an estimated $17 billion to $19 billion in outstanding loans.
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