Since 2018, Venezuelan President Nicolás Maduro has not visited China, an ally who strengthened his presence with the arrival of Hugo Chávez to power. Since then, Caracas has been indebted to Beijing and the dependency ratio was leveraged in exchange for liquidity for oil.
(Also read: Will the Venezuelan opposition manage to unite against Maduro for the 2024 elections?)
Today Venezuela -although with a few breaths- cannot get out of its economic or political crisis and has an electoral process on the horizon for 2024 in which Chavismo is betting on a new presidential term with Maduro, but for this it needs more than a declaration support, monetary liquidity is necessary. At least, that’s what analysts think.
“Good morning Venezuela! We arrived in Shenzhen, a city in the People’s Republic of China, ready for what will be a historic visit to strengthen cooperation ties and build a new global geopolitics. Pending! Good news will rain for the Venezuelan people,” Maduro published on the social network X (formerly Twitter).
The National Assembly of Venezuela authorized Maduro’s trip for five days on Thursday afternoon. Jorge Rodríguez, president of the parliament, spoke of the authorization that will be for five days and it is expected that it will be a five-day tour and that it will include other countries.
Maduro is expected to meet with his counterpart Xi Jinping.
Good morning Venezuela! We arrived in Shenzhen, a city in the People’s Republic of China, ready for what will be a historic visit to strengthen cooperation ties and build a new global geopolitics. Earrings! There will be good news for the… pic.twitter.com/lzhexFRbVU
— Nicolas Maduro (@NicolasMaduro) September 8, 2023
Vice President Delcy Rodríguez, together with the Minister of Petroleum, Rafael Tellechea, the Minister of Science and Technology, Gabriela Ramírez and the deputy and son of the president, Nicolás Maduro Guerra, came forward earlier in the week. The delegation arrived in Shanghai earlier this week and, according to the Bloomberg agency, they were seeking to negotiate joint ventures between China and the state-owned company Petróleos de Venezuela.
The group also met with Chinese Foreign Minister Wang Yi and Dilma Rousseff, president of the New Development Bank (BRICS). LThe entourage also visited the Shanghai Oil and Gas Exchange.
(Read also: Maduro affirms that he will not lift political disqualifications from opposition candidates)
“Maduro needs in this visit, at least to guarantee income of 5 billion dollars to comply with a slight reactivation of the economy and of course to be able to have resources in 2024, which is an electoral year,” Carlos Zambrano, a professor, told EL TIEMPO. retired and expert on Chinese and Asian affairs.
We appreciate the reception of the Minister of Foreign Affairs of the People’s Republic of China and Director of the Office of the Foreign Affairs Commission of the Central Committee of the Communist Party of China, Wang Yi, to whom we express the greetings of Pred. @NicolasMaduro and of all the… pic.twitter.com/Dwg4lXP549
— Delcy Rodríguez (@delcyrodriguezv) September 8, 2023
Public data indicates that Beijing has lent more than $60 billion in oil-backed debt through state banks through 2015 in the past, reaching a level of diplomatic investment and unrivaled in other parts of Latin America.
By 2018, according to AFP, the debt stood at 20,000 million dollars, reasons for which China would be evaluating new loans. “There are some people who believe that in China there is skepticism about investment in Venezuela until it pays or pays more to the debt contracted, so they do not believe that this time there are more than a few promises,” Zambrano reiterates.
Maduro needs in this visit, at least to guarantee income of 5 billion dollars to comply with a slight reactivation of the economy.
This visit also occurs in the midst of the rivalry between Washington and Beijing, but, in turn, the Joe Biden administration seeks mediation in the Venezuelan conflict, pressing sanctions in exchange for free elections.
For Zambrano, there is a reality of world political confrontation.
(Also read: US senators ask Biden to “prevent” Maduro from interfering in the opposition primary)
“Unfortunately, the United States is abandoning a reliable and close oil supplier with an unwise policy towards Venezuela, giving space to the expansionism and influence of the Asian giant in the continent and in the largest energy supplier in the region,” he explained to this newspaper.
The unity between Venezuela and China is strengthened in this new multipolar world that continues to make its way!
🇻🇪🤝🇨🇳 The Vice President @delcyrodriguezv held an important meeting with Chinese Foreign Minister Wang Yi to push forward the bilateral agenda. pic.twitter.com/snSTvM1HMc
— Yvan Gil (@yvangil) September 7, 2023
And that Chinese influence could be reinforced with the financial and military situation in Russia, which “president Maduro is obliged to put all his hopes and energy in the People’s Republic of China,” predicts Daniel Arias, a political scientist and expert in regional development.
For Arias, a “shy” Russian displacement by the Chinese, was seen in the naval parade of the battle of Lake Maracaibo in which the new war material brought from China was exhibited.
In addition, its other allies are not able to help Venezuela economically, such as Iran and Cuba, “in this sense, Maduro needs the security of having billions of dollars to be able to establish an effective increase in wages and salaries in the face of the elections, without inflation exploding and at the same time being able to finance a series of operations not only for current spending, but also for some investment spending that will allow the economy to survive for many months”, explains Arias.
The Venezuelan Foreign Ministry has described Maduro’s visit to China as “historic”, but for Arias, it is rather “mandatory” in order to continue surviving the sanctions and add efforts to the Chinese geopolitical plan.
ANA MARIA RODRIGUEZ BRAZON
WEATHER CORRESPONDENT
CARACAS
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