China-Venezuela Economic Relations: Hedging Venezuelan Bets with Chinese Characteristics1
Latin American Program | Kissinger Institute | February 2019 Chinese President Xi Jinping, right, shakes hands with Venezuela’s President Nicolás Maduro, Sept. 22, 2013. © Lintao Zhang / AP Photo China-Venezuela Economic Relations: 1 Hedging Venezuelan Bets with Chinese Characteristics LATIN AMERICAN PROGRAM LATIN AMERICAN PROGRAM Stephen B. Kaplan and Michael Penfold KISSINGER INSTITUTE Tens of thousands of Venezuelans raised their hands toward the sky on January 23, 2019, to offer solidarity to legislative leader, Juan Guaidó, who declared himself interim president of LATIN AMERICAN PROGRAM Venezuela during a rally demanding President Nicolás Maduro’s resignation. Refusing to rec- ognize the legitimacy of Maduro’s May 2018 re-election, Guaidó cited his constitutional duty as the head of the National Assembly to fill the presidential vacancy until new elections were called. Hand in hand with Guaidó, the United States unequivocally supported his declaration, recognizing him as Venezuela’s head of state. Backed by Argentina, Brazil, Canada, Chile, Co- lombia, Israel, and Peru, President Trump said he would “use the full weight of United States economic and diplomatic power to press for the restoration of Venezuelan democracy.” More recently, Spain, the United Kingdom, France, and Germany also recognized Guaidó as interim president after Maduro failed to call new elections. The United States also backed its position with some economic muscle, imposing sanctions on Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA), saying that all PdVSA assets, including its oil sale pro- ceeds, will be frozen in U.S. jurisdictions. 1 The authors would like to thank Cindy Arnson and Robert Daly for their insightful commentary about China-Latin American relations, Marcin Jerzewski, Beverly Li, and Giorgos Morakis for their superb research assistance, and Orlando Ochoa, Francisco Monaldi, and Francisco Rodríguez for invaluable conversations about the current state of the Venezuelan economy and oil sector.
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