The dictatorship of Xi Jinping demanded that its interests in the Venezuelan oil industry be protected, after the new pact with Washington could affect the operations of Chinese state-owned companies like CNPC and Sinopec
Among the Chinese companies present in Venezuela are China National Petroleum Corporation (CNPC) and Sinopec, two large state-owned enterprises that have participated for years in exploration and production projects of Venezuelan crude oil. The fear of Xi's dictatorship is that the new investment and concession structure will reduce its participation in strategic sectors of the energy industry.
Now, the Trump administration seeks to occupy a much more significant position. U.S. officials defended the agreement as a tool to ensure a stable oil supply, attract investments, and contribute to Venezuela's economic recovery. The operation was also presented as part of a broader U.S. strategy to reduce the influence of China and Russia.
The agreement includes long-term participation in fields that contain enormous crude reserves. According to estimates released about the agreement, the involved reserves exceed 65 billion barrels, while the investments needed to recover and expand production could reach USD 100 billion.
The oil agreement not only modifies Venezuela's economic outlook: it also opens a new dispute for influence over one of the largest oil resources in the world, with the United States attempting to expand its presence and China defending the positions it has built over the years in the Venezuelan energy sector.
China claimed on Tuesday that its legitimate interests and rights in Venezuela should be protected, after details of the new oil agreement reached between Caracas and Washington were revealed. The regime of Xi Jinping fears that the agreement could alter control over some fields in which Chinese state-owned companies participate.
The spokesperson for the Chinese Ministry of Foreign Affairs, Guo Jiakun, stated that China’s legitimate rights and interests in Venezuela “must be safeguarded.” The official noted that Beijing took note of the information regarding the agreement, although he avoided confirming whether the operations of Chinese companies would be directly affected.
China's concern arises after the new pact between the United States and Venezuela included the participation of American companies in 17 major Venezuelan oil fields, some of which were previously linked to companies from China and Russia.
The agreement of the Donald Trump administration includes long-term concessions and aims to attract a massive amount of private capital to recover Venezuelan oil production.
