China reiterates support for Venezuelan socialist regime
China stands by policy in Venezuela after Trump's speech at the UN
MIAMI – Despite U.S. condemnation of President Nicolas Maduro at the United Nations, China's policy towards Venezuela will not change, the Chinese state news agency Xinhua reported Wednesday.
Chinese Foreign Minister Wang Yi and Venezuelan Foreign Affairs Minister Jorge Arreaza met on the sidelines after President Donald Trump's speech, according to Xinhua.
This didn't come as a surprise to Evan Ellis, a U.S. Army War College professor, who recently testified before a subcommittee of the Foreign Affairs Committee.
"Russia and China -- in the pursuit of their commercial and strategic interests in Venezuela -- have provided capital, goods, services and political backing," Ellis said at the hearing.
Ellis also said China has been Venezuela's principal banker, because Venezuela keeps some gold reserves in China and China in turn is a "major source of credit" -- about $62.2 billion since 2005.
Without the Chinese, Venezuela could collapse.
"The work performed by Chinese entities funded by such credit has become increasingly critical for building and maintaining the oil, electricity and transportation infrastructure to get Venezuelan oil to market," Ellis said.
U.S. sanction against Venezuela could end up being beneficial for the Chinese, Kent Moors, an oil and natural gas policy expert, wrote earlier this year for OilPrice.com.
"Coming down on both Maduro and PDVSA by assaulting oil may simply further Russian and Chinese plans already underway, pushing Venezuela further into their arms," Moors said.
Venezuela was late on a debt payment on a $185 million coupon due Sept. 15 with a 30-day grace period, which was raising fears that they could be running out of cash, Bloomberg reported Wednesday.
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