China And Venezuela Have Agreed To Upgrade Their Countries' Relations To A Strategic Partnership

A Venezuelan government image of Venezuelan President Nicolas Maduro during a broadcast of his weekly program 'Con Maduro+' from Shandong province, China, on Tuesday.MARCELO GARCIA (EFE)  

Al Jazeera: China’s Xi says ‘upgrading’ Venezuela relations after meeting Maduro 

Two leaders sign agreements on economy, trade and tourism during meeting in Beijing. 

China’s President Xi Jinping has held a meeting with his Venezuelan counterpart, Nicolas Maduro, during which the two leaders agreed to upgrade their countries’ relations. 

Chinese state media said the two leaders on Wednesday signed several bilateral cooperation documents focused on areas including the economy, trade and tourism after the talks in Beijing.  

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WNU Editor: Venezuela owes China tens of billions of dollars. Venezuelan President Nicolas Maduro needed to go to China to negotiate the terms of all of these loans as well as receiving economic support from Beijing to prevent Venezuela's economy from collapsing even more. 

 China And Venezuela Have Agreed To Upgrade Their Countries' Relations To A Strategic Partnership  

Maduro Says Venezuela, China Entering 'New Era' After Trip -- Bloomberg  

China upgrades relationship with Venezuela to 'all weather' partnership -- AP

Xi, Maduro announce elevation of China-Venezuela ties -- Xinhua  

Nicolás Maduro visits China to try to alleviate Venezuela’s economic crisis -- El Pais

Venezuela Resumes Direct Oil Shipments To China

An oil tanker is seen at Jose refinery cargo terminal in Venezuela in this undated file photo. REUTERS/Jorge Silva 

Reuters: Exclusive: Venezuela resumes direct oil shipments to China despite U.S. sanctions 

(Reuters) - Venezuela has resumed direct shipments of oil to China after U.S. sanctions sent the trade underground for more than a year, according to Refinitiv Eikon vessel-tracking data and internal documents from state company Petroleos de Venezuela (PDVSA). 

Chinese state companies China National Petroleum Corp (CNPC) and PetroChina - long among PDVSA's top customers - stopped loading crude and fuel at Venezuelan ports in August 2019 after Washington extended its sanctions on PDVSA to include any companies trading with the Venezuelan state firm. 

Imposition of the sanctions was part of a push by the Trump administration to oust Venezuelan President Nicolas Maduro, but they failed to completely halt the South American nation’s oil exports or to loosen Maduro’s grip on power. 

PDVSA’s customers instead boosted shipments to Malaysia, where transfers of cargoes between vessels at sea have allowed most of Venezuela’s crude to continue flowing to China after changing hands and using trade intermediaries. 

PDVSA, CNPC, PetroChina and Venezuela’s oil ministry did not reply to requests for comment. 

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Update: Venezuela continues selling oil to China despite US sanctions – report (RT) 

WNU Editor: Venezuela owes China tens of billions in loans. The pressure on Venezuela to resume oil exports from Beijing must be enormous. There is also an expectation that the incoming Biden administration will not impose penalties on these Chinese oil importers. In the meantime tensions between the U.S. and Venezuela have just escalated .... Venezuela judge convicts 6 American oil execs, orders prison (ABC/AP News).

This Is How Venezuela Lost Three Oil supertankers To China Because Of US Sanctions

An oil tanker is docked while oil is pumped into it at the ships terminal of PDVSA's Jose Antonio Anzoategui industrial complex in the state of Anzoategui April 15, 2015. REUTERS/Carlos Garcia Rawlins/File Photo

Reuters: Exclusive: How Venezuela lost three oil supertankers to its Chinese partner

NEW YORK/SINGAPORE (Reuters) - A shipping joint venture between Venezuela and China has fallen apart in the wake of U.S. sanctions, resulting in the South American nation losing three supertankers at a time when foreign shippers are reluctant to carry its oil, court documents show.

PetroChina Co Ltd, which had been state-run Petroleos de Venezuela’s partner in the Singapore-based joint venture CV Shipping Pte Ltd, took control of the three tankers between January and February, according the documents from a Singapore court reviewed by Reuters.

The transfer of the Junin, Boyaca and Carabobo very large crude carriers (VLCC) has not been previously reported.

It came after U.S. sanctions on PDVSA left the vessels without insurance, leading to millions of dollars in losses for CV Shipping and prompting PetroChina to place it in bankruptcy. The original purpose of the venture was to ship Venezuelan oil to China and some other export destinations.

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WNU Editor: Venezuela owes China tens of billions of dollars. I think there is an awareness within China that they are not going to be paid back. So what they are doing right now is picking what lettle meat is left on the carcass.

China Continues Buying Venezuelan Oil Despite U.S. Sanctions

Reuters: Special Report: How China got shipments of Venezuelan oil despite U.S. sanctions

CARACAS/MEXICO CITY (Reuters) - Last year, China replaced the United States as the No. 1 importer of oil from Venezuela, yet another front in the heated rivalry between Washington and Beijing.

The United States had imposed sanctions on Venezuela’s state-owned oil company as part of a bid to topple that country’s socialist president, Nicolas Maduro. U.S. refineries stopped buying Venezuelan crude. Caracas’ ally China, long a major customer, suddenly found itself the top purchaser. Through the first six months of 2019, it imported an average of 350,000 barrels per day of crude from Venezuela.

But in August, Washington tightened its sanctions on Venezuela, warning that any foreign entity that continued to do business with the South American country’s government could find itself subject to sanctions. State-owned China National Petroleum Corp, known as CNPC, stopped loading oil at Venezuelan ports that month. China’s import data showed purchases started to slow, and by late 2019, abruptly stopped.

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Update: China Continued Buying Venezuelan Oil Despite U.S. Sanctions (OilPrice.com)

WNU Editor: Venezuela owes China tens of billions of dollars. This oil is probably being used to pay off the debt. As for the future, Venezuela is down to just one rig .... Country With World’s Largest Oil Reserves Has Only One Rig Left (OilPrice.com).

Chinese Oil Contractor Halts Work On Venezuela (The Have Not Been Paid)

Chinese President Xi Jinping (2nd R) and his wife Peng Liyuan (1st R) pose for a group photo with Venezuelan President Nicolas Maduro (2nd L) and his wife in Beijing, capital of China, Sept. 14, 2018. Xi held talks with Maduro in Beijing on Friday. (Xinhua/Ju Peng)

Houston chronicle/Bloomberg: Venezuela’s oil woes deepen as Chinese contractor halts work

A Chinese oil contractor halted work on an expansion project in Venezuela because it hasn’t been paid, underscoring the difficulties for the Nicolas Maduro regime even at energy ventures backed by allies.

China Huanqiu Contracting and Engineering Corporation, an affiliate of government-run China National Petroleum Corp., notified the Sinovensa joint venture it has suspended work to expand a crude blending facility by 57% to 165,000 barrels a day, according to a document seen by Bloomberg and a person familiar with the matter.

That’s in contrast to comments from state-controlled Petroleos de Venezuela SA last month announcing a second expansion to take output to 230,000 barrels a day at the project, which is jointly owned by PDVSA and CNPC -- China’s biggest energy company.

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WNU Editor: The Chinese have had enough.

China Has Stopped Purchasing Oil From Venezuela

OilPrice.com: CNPC Backs Out Of Oil Purchases With Venezuela On Sanctions Scare

Russia and China have stuck with Venezuela during its most recent time of need, but at least one of their loyalties may soon come to an end, according to anonymous sources who spoke to Bloomberg on Friday.

CPNC’s PetroChina has canceled loading plans in August that would have seen 5 million barrels of Venezuelan oil, the sources said, as the United States continues to squeeze Venezuela to loosen Nicolas Maduro’s hold on the troubled Latin American Country.

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Update #1: China’s Biggest Energy Company Shuns Venezuela Oil on Tighter U.S. Sanctions (Bloomberg)
Update #2: PetroChina Suspends Venezuelan Oil Imports In Huge Blow To Maduro (Zero Hedge)

WNU Editor: Russia has stepped in to purchase this oil. But if Russia stops buying Venezuela's oil, this would be a signal to everyone that Maduro is now truly alone.

China To Help Venezuela Repair Its Refineries. Condemns U.S. Actions Against Venezuela.

An infographic shows which nations support Venezuelan President Nicolás Maduro and which support opposition-controlled National Assembly head Juan Guaidó as of January 25. Albania, the EU, Georgia, Israel, Japan and South Korea were among those who have since backed Guaidó, while others—such as Cambodia, North Korea, the Palestinian government, South Africa and Syria—have joined a U.N. group designed to condemn U.S. threats of military intervention against Maduro's government. Statista

OilPrice.com: Chinese Company Will Help Venezuela Fix Its Refineries

A Chinese company has signed up to help Venezuela revive its oil refineries and alleviate fuel shortages resulting from the inability of refineries to operate at anything even close to capacity.

Bloomberg quotes unnamed sources as saying Wison Engineering Services Co., a company headquartered in Shanghai, will use funds from Beijing’s Belt and Road initiative to repair Venezuelan refineries. Venezuela, for its part, will pay Wison in oil products.

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WNU Editor: The only way that Venezuela's oil industry can be renewed is if China is willing to invest billions and to send in hundreds (if not thousands) of oil workers. This is not going to happen. Venezuela already owes tens of billions to China, and I doubt that Beijing is willing to dump billions more. As for this Chinese oil company vowing to help Venezuela fix its refineries .... good luck to that.

More News On China Helping Venezuela Rebuild Its Oil Infrastructure

China Comes to the Rescue of Venezuela’s Run-Down Oil Refineries -- Bloomberg
Chinese foreign ministry slams U.S. 'interference' in Venezuela -- Reuters
China slams US for 'bullying' Venezuela -- AFP
China and Russia Say U.S. Has Failed in Venezuela, Now It's Time to Give Up -- Newsweek

Venezuela Is Using China-Built ‘Rhinoceros’ Vehicles To Quell Anti-Government Protests

Venezuelan security forces used Chinese-built armoured personnel carriers against anti-government protests in Caracas. Photo: AFP

SCMP: Venezuela sends in China-built ‘Rhinoceros’ vehicles to quell anti-government protests

* Military equipment part of a range that Beijing has sold to Caracas, its biggest Latin American customer

Authorities in Caracas have deployed Chinese-built armoured personnel carriers against protesters calling for the downfall of Venezuelan President Nicolas Maduro.

Eight VN-4 “Rhinoceros” carriers were used on Tuesday against supporters of opposition leader Juan Guaidó in the country’s capital, according to state broadcaster Venezolana de Televisión.

The carriers were rolled out a day after China sent emergency supplies to Venezuela, including about 65 tonnes of medicines and surgical products.

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WNU Editor: These armoured personnel carriers are effective (see video below).

Kremlin: Putin And Xi Jinping Condemn Attempts To Topple The Venezuelan Government

Kremlin Spokesman Dmitry Peskov. © Mikhail Metzel/TASS

TASS: Putin, Xi Jinping slam attempts to topple Venezuelan authorities as unacceptable - Kremlin

According to Kremlin Spokesman Dmitry Peskov, the two leaders stressed that the people of Venezuela should independently decide on the future of their country, including on its political leadership

YUZHNO-SAKHALINSK, April 28. /TASS/. Russian President Vladimir Putin and Chinese President Xi Jinping at the meeting in Beijing stressed that foreign pressure on Venezuela and the attempts of using force with the goal of ousting the authorities are unacceptable, Kremlin Spokesman Dmitry Peskov said on Sunday.

"As for Venezuela, both the Chinese and our leader highlighted that it is totally unacceptable when anyone tries to topple authorities in a third country, attempting to use force and illegal international pressure against a sovereign state, in order to change the leadership there," Peskov told the program "Moscow. Kremlin. Putin" on Rossiya-1 TV channel.

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Update: Russia Accuses U.S. Of Political 'Blackmail' After Sanctions Imposed On Venezuela FM -- RFE

WNU Editor: Putin and Xi are reacting to this .... US oil sanctions take effect on Venezuela as crisis intensifies (AFP). This analysis is also probably true, but both China and Russia will demand (and get) a lot .... US oil embargo will see Venezuela turn to China, Russia for salvation (AFP).

China Has 120 Soldiers In Venezuela (Updated)

#Venezuela #China #Russia #Caracas #Chinese army soldiers arrived in Venezuela

Chinese People’s Liberation Army soldiers, as part of a cooperation program, arrived, after delivering humanitarian supplies, to one of Venezuelan military facilities. pic.twitter.com/HwZ9Ee67d0

— Sukhoi Su-57 frazor🇷🇺🇮🇳 (@I30mki) April 1, 2019

Zero Hedge: China Sends Over 120 Troops To Venezuela In Defiance Of US Warnings

It doesn't appear last Friday's strong warning from national security adviser John Bolton for countries "external to the Western Hemisphere" to keep their militaries out of Venezuela had the intended effect. Bolton's and other White House statements saying "Russia has to get out" came following Russian Air Force planes landing in Caracas with about 100 troops, which the Kremlin said were there as "specialists" servicing existing defense equipment contracts.

And now according to Al-Masdar News, citing defense analyst photographs and local reports, "more than 120 soldiers from the Chinese People’s Liberation Army arrived at Venezuela’s Margarita Island to deliver humanitarian and military supplies to the government forces."

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WNU Editor: Chinese state media is still focusing much of the blame for the mess that Venezuela is currently in on the U.S. and on the opposition .... Is there a way out of Venezuela's multiple crisis? (Jiang Shixue, China.org.cn).

Chinese Troops In Venezuela

Chinese troops in Venezuela. Courtesy of @Mar153313 pic.twitter.com/LPlhVBBOEF

— Lee, Andy 李安倢 (@LeeAndy33996956) March 30, 2019

WNU Editor: I guess these Chinese soldiers came in with this flight .... Venezuela welcomes arrival of Chinese medical aid (Anadolu Agency).

What Does China Have To Lose In Venezuela?

Chinese President Xi Jinping (2nd R) and his wife Peng Liyuan (1st R) pose for a group photo with Venezuelan President Nicolas Maduro (2nd L) and his wife in Beijing, capital of China, Sept. 14, 2018. Xi held talks with Maduro in Beijing on Friday. (Xinhua/Ju Peng)

SCMP: From oil to infrastructure, why China has plenty to lose from political turmoil in Venezuela

* Caracas needs Chinese loans and investment in various sectors, but the relationship offers mutual benefits
* Instability and a struggling economy in the South American country have already cost Beijing dearly

Venezuela’s political crisis appears to be reaching boiling point, with opposition leader Juan Guaido and President Nicolas Maduro each backed by different world powers.

Maduro, who has been in power for six years, claimed victory in a presidential election last May that was called invalid by his rivals after he barred opponents from running and drew a 46.7 per cent turnout, the lowest in the country’s democratic era.

Guaido, the president of the legislature, declared himself interim president on January 23 and has promised to call elections. Following US President Donald Trump, European countries have recognised him as de facto head of state, heightening international pressure on the troubled country.

But despite overseeing an economic collapse and the exodus of millions of Venezuelans, Maduro retains the critical support of the military and the powerful backing of Russia, China and Turkey.

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WNU Editor: The current Chinese position on Venezuela is the following .... China says 'peaceful dialogue' only way to solve Venezuela crisis; Beijing has lent Meduro regime $65 billion in last decade (First Post/AP). And even though the Venezuelan opposition is saying that they will respect Venezuela's debts to China, I am sure the Chinese are worried.

China Supports The Venezuelan Government Under Nicolas Maduro

President Xi Jinping met with President Nicolás Maduro of Venezuela at the Great Hall of the People

SCMP: Wary China offers support to embattled Venezuelan President Nicolas Maduro

* Beijing calls for calm as it weighs prospects for its huge investments amid Caracas’ political turmoil

China voiced support for the increasingly isolated Venezuelan President Nicolas Maduro on Thursday as the Latin American country plunged deeper into turmoil over a diplomatic showdown with the United States.

As oil-rich Venezuela’s main ally and creditor, China faces a dilemma – caught between backing Maduro and not taking sides – as it weighs the implications of a growing social and political crisis on its multibillion-dollar investment, analysts said.

Chinese foreign ministry spokeswoman Hua Chunying called on “all parties to remain rational and keep calm, and reach a political settlement through peaceful dialogue”.

Asked directly if China recognised Maduro, Hua said Beijing sent representatives to his inauguration. “We respect Venezuela’s efforts to uphold its sovereignty, independence and stability,” she added.

“China opposes foreign forces from interfering into Venezuela affairs.”

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WNU Editor: The Chinese government is publicly supporting the Maduro regime, but internally they gave up on him last year, and our trying to grab what they can before he is gone .... Venezuela Is Losing Friends In China (November 28, 2018).

More News On China's Reactions To The Crisis In Venezuela

China 'opposes' foreign interference in Venezuelan crisis -- AFP
Venezuela crisis watched by China immigrants who fled chaos with anxiety – and hope -- SCMP
China opposes outside interference in Venezuela's affairs -- Reuters

Venezuela Is Losing Friends In China

President Xi Jinping met with President Nicolás Maduro of Venezuela at the Great Hall of the People

Benjamin N. Gedan, Americas Quarterly: China’s Venezuela Policy Is Losing Popularity – in China

Amid hyperinflation and declining oil production, skepticism surrounds China's bet on Venezuela.

SHANGHAI – Nicolás Maduro’s visit to Beijing in September was front page news in Caracas, as the Venezuelan leader trumpeted China’s willingness to extend a $5 billion credit line to its cash-strapped South American ally.

For Maduro, meetings with President Xi Jinping and the Chinese premier, Li Keqiang, helped challenge Venezuela’s portrayal as a global pariah, and validated his promises of “big achievements” during the trip.

Inside China, however, Maduro was a ghost. State media ignored the visit, according to analysts who are usually called upon to discuss the government’s high-level Latin America engagements. Government statements made no reference to the credit line, leading observers to wonder whether Maduro had invented the loan.

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WNU Editor: If Russia is having problems collecting their debts from Venezuela .... Russia Wants To Know Why Venezuela Is Behind It's Debt Payments (November 24, 2018), I am sure that China .... who is owed more money .... is having the same problem.

On a side note .... the next generation of opposition leaders in Venezuela are becoming known, and they are coming form the slums and those who are suffering under the Maduro regime .... Venezuela’s next generation of opposition plays a long game (AP).

Venezuela's Maduro Praises Mao During China Trip. Begs Beijing For Billions

Venezuela's President Nicolas Maduro lays wreath at Mao Zedong's mausoleum in Beijing [Miraflores Palace/Handout via Reuters]

Al Jazeera: 'Great founder': Venezuela's Maduro praises Mao during China trip

Venezuelan leader makes rare visit to Mao Zedong's mausoleum as he seeks Beijing's help in tackling economic crisis.

Venezuelan President Nicolas Maduro has begun a visit to China by paying his respects to Mao Zedong, before signing a raft of deals aimed at bolstering his country's crisis-hit economy.

Calling the founder of Communist China a "giant of the homeland of humanity", Maduro bowed three times in front of a wreath at the massive mausoleum in the capital, Beijing, where Mao's body lies.

"We are beginning this state visit in the best way because we have come to pay tribute to the great helmsman Mao Zedong," Maduro said on Friday.

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WNU Editor: The Chinese are saying that they will help .... China vows to help crisis-hit Venezuela (DW), but they are not doing it for free .... Venezuela hands China more oil presence, but no mention of new funds (Reuters). And this possibility should not be discounted .... What if China sets up a naval base in Venezuela? (Tom Rogan, Washington Examiner)
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More News On Venezuelan President Maduro's Trip

Venezuela's Maduro pays tribute to Mao, makes deals with China -- AFP
Mao is my hero, says Maduro as he begs China for billions -- The Times
Maduro Seeks New Funding On Visit To China -- OilPrice.com
China says promise of more money for Venezuela part of ‘mutually beneficial cooperation’ -- SCMP
China Focus: Xi, Maduro agree to promote Sino-Venezuelan ties to higher level -- Xinhuanet

Venezuelan President Maduro Is Traveling To China To Raise Money For His Government

Reuters: Venezuela's Maduro travels to China in search of fresh funds

CARACAS/BEIJING (Reuters) - Venezuelan President Nicolas Maduro is traveling to China to discuss economic agreements, as the crisis-struck OPEC nation seeks to convince its key Asian financier to disburse fresh loans.

“I am going with great expectations and we will see each other again in a few days with big achievements,” the leftist leader said on Wednesday in a state broadcast from the airport, without providing details.

Venezuela’s Information Ministry did not respond to a request for comment.

China’s Foreign Ministry said Maduro would visit from Thursday until Saturday at the invitation of President Xi Jinping.

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Update #1: Maduro looks to China to bolster Venezuela's collapsing economy -- France 24
Update #2: Nicolas Maduro heads to China as he tries to salvage Venezuelan economy -- SCMP

WNU Editor: The Chinese government has thrown the Venezuelan government a lifeline that is to be backed by future oil exports .... China to Lend Venezuela $5 Billion as Maduro Visits Beijing (Bloomberg). This is a big disappointment for Venezuelan President Maduro. He was expecting more. Also .... the terms of this $5 billion credit line have not been announced, but I suspect that it is probably more stringent than the last one which charged high interest rates and was also backed by future oil exports (at a fixed low price)

Venezuela's Debt to China Will Cripple The Country For Years To Come

Xi Jinping and Nicolás Maduro. (Venezuelan Ministry of Communications)

Christopher Balding, Foreign Policy: Venezuela’s Road to Disaster Is Littered With Chinese Cash

Politicized loans left the socialist South American country trapped under a mountain of Chinese debt — but now others want to sign up for Beijing's "generosity."

The Venezuelan and Chinese economies seem like they could hardly have less in common. The Venezuelan government of Nicolás Maduro has looted the state-run oil company Petróleos de Venezuela (PDVSA) to pay for the “Bolivarian revolution,” the socialist movement begun under the late leader Hugo Chávez. With oil prices down, the country is unable even to repair rigs or pay workers to generate income, and the government now faces the prospect of a mass uprising. Meanwhile, half a globe away, China’s gleaming malls stand in stark contrast to Venezuela’s empty shelves.

But Venezuela’s ruinous state has more to do with China than one might think — specifically, with Chinese President Xi Jinping’s plan for expanding China’s global influence through financial diplomacy. Venezuela’s collapse is about to serve as an object lesson on that plan’s high costs for China’s erstwhile partners — and ultimately for China itself.

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WNU Editor: Venezuela is not in a position to pay the interest on these debts, let alone the principle. But China wants to be paid .... so they are now picking at the carcass .... China Will No Longer Financially Support Venezuela (March 31, 2018). This is a classic example on what happens when governments borrow money with no vision on how they will pay it. Unfortunately .... as most of us know .... governments always ignore warnings when it comes to borrowing money and how it should be paid back.

China Has Not Congratulated Venezuelan President Maduro On His Election Win

China's President Xi Jinping (L) and Venezuela's President Nicolas Maduro shake hands during a signing ceremony in Caracas July 21, 2014. REUTERS/Carlos Garcia Rawlins/File Photo

SCMP: China won’t interfere in Venezuela despite controversy over President Maduro’s election win

Beijing says it is confident Caracas can resolve any disputes relating to the poll, but falls short of congratulating leader on his re-election.

China said on Monday it would not interfere in Venezuela’s domestic affairs and trusted the South American country to resolve any problems it faced following President Nicolas Maduro’s controversial re-election on Sunday in a poll that was boycotted by millions.

Despite the upbeat tone of Chinese foreign ministry spokesman Lu Kang, Beijing has yet to issue its congratulations to Maduro, while some Chinese living in Venezuela described the president’s win as a disaster for the oil-rich country.

Lu said China hoped Venezuela could sort out any disputes relating to the election within the framework of the law, “if there are any disputes”, and that it would decide whether to send a note of congratulations “according to diplomatic protocols”.

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WNU Editor: Off-hand the only countries that have congratulated Maduro are Nicaragua, Cuba, Bolivia, Turkey, and Iran. I am not sure about Russia, but I do know that Moscow is like Beijing .... they are owed tens of billions by the Venezuelan government, and contrary to its many promises Venezuela is failing to meet its payments.This is not the action of a friendly ally.

China Will No Longer Financially Support Venezuela

China's President Xi Jinping (L) and Venezuela's President Nicolas Maduro shake hands during a signing ceremony in Caracas July 21, 2014. REUTERS/Carlos Garcia Rawlins/File Photo

Nick Cunningham, OilPrice.com: Did Venezuela Just Lose A Key Ally?

Venezuela’s debt crisis is only expected to grow worse this year, and the government could be without one of its most important benefactors, raising the odds of yet another default.

China has sent around $50 billion to Venezuela over the years, loans that were repaid in oil shipments. China needed oil and Venezuela needed cash, and the relationship worked for a period of time. But as Venezuela’s economic situation took a turn for the worse, China slowly backed away. Or, more accurately, China allowed Venezuela more lenient repayment terms while at the same time slowly closing the door on new loans.

According to a new Reuters report, with an agreement expiring this year, China will likely extend a financing arrangement that has already been in place that stretches out Venezuela’s debt payments. With little to no cash on hand, China is allowing Venezuela to only pay interest on its debt.

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WNU Editor: Venezuela owes both China and Russia tens of billions of dollars .... and they can no longer repay these loans. What we are now seeing is a picking of the carcus from both Russia and China .... which was predicted by many (including yours truly) years ago.

China Losing Patience With Venezuela

File photo of Chinese President Xi Jinping preparing to shake hands with Venezuelan President Nicolas Maduro before their meeting at the Great Hall of the People in Beijing, China, September 1, 2015. REUTERS/Parker Song/Pool

Bloomberg: Venezuela-China Relationship Sours as Sinopec Sues PDVSA

* Sinopec files lawsuit in the U.S. and requests for arbitration
* China has loaned about $50 billion to Venezuela in past decade

The relationship between China and Venezuela has seen better days.

China Petroleum & Chemical Corp., the state-controlled oil company, is suing Petroleos de Venezuela SA in U.S. courts for unpaid bills. Sinopec, as the Chinese company is known, also filed a request for arbitration against PDVSA at the International Chamber of Commerce, as it alleges damages of at least $23.7 million, according to court papers. The development comes almost three months after PetroChina Company Ltd advised its U.S. unit to avoid any involvement in future loans to PDVSA.

The lawsuit further illustrates how the relationship between the two long-time partners is turning bitter after delays in paying past loans and oil quality issues. It’s also evidence that Beijing might not always be there to bail out Venezuela, as it has done over and over in the past decade, Russ Dallen, a managing partner at Caracas Capital Markets, a Venezuela-based investment bank, said in a note to clients.

The court documents give some insight on what partners such as Sinopec deal with to help cash-strapped PDVSA to operate.

Read more ....

Update #1: Lawsuit shows China losing patience with Venezuela (Financial Times)
Update #2: China’s Sinopec sues Venezuelan oil firm as Beijing’s patience wanes over debt crisis (SCMP/AP)

WNU Editor: If there is one thing that the Chinese really hate .... it is when people who owe them money do not pay them. As to why did China and Russia lend tens of billions of dollars to Venezuela in the first place .... it made no sense to me then .... and today .... it is good to see all the smart people in Beijing and Moscow "swallowing crow" knowing that they really screwed-up on this one.

Update #3: More evidence on how screwed-up Venezuela really is .... Venezuela inflation reaches quadruple digits, hitting 1,369 percent (Reuters).