A US-backed company’s takeover of Venezuelan oilfields, some of which were previously managed by Chinese firms, has dealt a blow to Beijing’s oil-backed loans and yuan trade networks, analysts say.Through North American Blue Energy Partners (NABEP), a private company, the White House said the US had secured access to oilfields with 65 billion barrels of proven reserves in Venezuela – around one-fifth of the Latin American country’s total supply – including sites previously operated by Chinese firms.“Oil development in Venezuela is effectively dominated by the United States,” said Cui Shoujun, a professor at Renmin University of China’s School of International Studies.“[China’s] likelihood of recovering its debts has decreased,” he added.Venezuela was the largest recipient of Chinese state-backed lending in Latin America, having borrowed more than US$100 billion since 2000, according to US research lab AidData. Most of these were structured as oil-backed loans, requiring shipments of crude to Chinese state buyers, with proceeds going into a Beijing-controlled account to service the debt.
‘Direct hit’: China dealt blow as US-backed firm takes over Venezuelan oilfields
Venezuela was the biggest recipient of China’s lending to Latin America, and Beijing is unlikely to recover debts, one analyst says.
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