Caracas [Venezuela], August 4 (ANI): The relationship between China and President Nicolas Maduro is based on mutual benefits, with China seeking to expand its influence in the region and Venezuela looking for economic and political support. This alliance has been crucial for Maduro’s survival and has allowed China to increase its presence in Latin America.
China has extended huge projects to Venezuela and, in return, has secured essential resources from the oil-rich country, which is one of the reasons why Beijing prefers ‘stability” and has thrown full support behind Nicolas Maduro despite the poll results being deemed controversial, Voice of America reported.
The recent presidential election results in Venezuela have been marred with rampant allegations of fraud, which has sparked widespread protests domestically and drawn sharp criticism internationally.
Though the US has thrown its support behind opposition challenger Edmundo Gonzalez, China and Russia swiftly endorsed the incumbent, Nicolas Maduro.
Last week, Venezuela’s electoral council declared that the president had secured 51 per cent of the vote, compared to 44 per cent for Gonzalez. These results starkly contradicted exit polls, which had shown Gonzalez leading by a significant margin.
The Carter Center, which was invited to observe the election, issued a statement that the vote “did not meet international standards of electoral integrity” and declared the outcome “cannot be considered democratic.”
Most Latin American countries — with the exceptions of Bolivia, Nicaragua, Honduras, and Cuba — have either rejected or expressed concern over the official election results.
In contrast, China’s reaction has been markedly supportive. President Xi Jinping has fully endorsed Maduro, asserting that Beijing will “firmly support Venezuela’s efforts to safeguard national sovereignty, national dignity, and social stability.”
China has provided political backing to Maduro’s government, recognising him as the legitimate president of Venezuela, despite opposition claims of electoral fraud.
“China prefers a stable Venezuela, and what they identify as [a] credible source of stability at the moment is Nicolas Maduro,” Antulio Rosales, an assistant professor of business and society at York University said.
“So, even though Maduro may stay in power via non-democratic means, it’s clear that China sees him as a more credible possibility for stability,” he noted.
China has also used its veto power in the UN Security Council to block resolutions against Maduro’s government.
Evan Ellis, a research professor of Latin American studies at the US Army War College, said the mass investment from Beijing is also a factor.
“China has a longstanding commercial and political relationship with the leftist regime of Hugo Chavez and now Nicolas Maduro since the early 2000s, including recognising it as a strategic partner under Hugo Chavez, and upgrading that relationship to all around comprehensive strategic partner last year under Nicolas Maduro,” he said.
Last September, Maduro and Xi announced the upgradation of their bilateral relationship to an “all-weather strategic partnership,” the highest level of cooperation between two nations.
Beijing now holds a substantial loan portfolio with Caracas, representing nearly half of all Chinese loans extended to Latin America and the Caribbean. It’s estimated that China has financed more than USD 60 billion worth of projects in Venezuela, as reported by VOA.
In return, China has secured essential resources from the oil-rich country, including crude oil and minerals, through an oil-for-loan model.
The relationship between the two countries has been two-sided. Maduro is also repaying China by staunchly supporting the country on the international stage.
Maduro’s administration has provided unconditional backing to China, including endorsing Beijing’s one-China principle by recognising Taiwan as an inalienable part of China. Additionally, Maduro supports China’s national security law in Hong Kong, and upholds China’s claims in the contested South China Sea.
Venezuela is also collaborating with China on expanding social control measures. The Maduro government has acquired the Homeland Card system from China, which includes a unique personalised QR code capable of tracking individual votes and social media usage.
“Venezuela is important to the full range of China’s ambitions in the Americas, including access to resources, markets in strategic sectors, political strategic objectives, and military options if it ever must fight a war with the United States in the Indo-Pacific,” said Ellis from the US Army War College.
Antonio C Hsiang, a research professor at Chile’s National Academy of Political and Strategic Studies, said that Venezuela has become a significant battleground in the US-China rivalry.
Hsiang argued that Venezuela’s political resistance to the United States and its efforts to undermine US influence within Inter-American institutions serve as a strategic distraction for the US in its own hemisphere, ultimately benefiting China.
However, the Chinese business community, is not as happy with the Maduro government, VOA reported.
Venezuela — once the wealthiest nation in Latin America because of its status as home to the world’s largest crude oil reserves — has seen its current government’s popularity wane significantly. The decline is attributed to an economic crisis driven by falling oil prices, corruption, and flawed policies.
In 2013, a sharp decline in oil prices, a key export for Venezuela, triggered a severe economic and political crisis. The country’s GDP contracted by 75 per cent between 2014 and 2021. Annual inflation surged to upwards of 130,000 per cent in 2018, according to its central bank.
These factors culminated in Venezuela’s suspension of loan repayments in 2020, including those to its largest creditor, China.
“China is not particularly concerned with issues of transparency or corruption domestically [in Venezuela],” Rosales said. “Beijing is more focused on Caracas’ inability to execute some of the projects it has committed to.”
He further observed that Chinese businesses have stopped further investing into the country.
According to VOA report, it may take weeks or even months to determine whether China’s bet on Maduro will pay off.
Rosales suggested that China’s concerns regarding Venezuela, though, are unlikely to shift — even if the opposition party comes to power.
“China maintains good relations with countries like Chile, which has long been governed by pro-market regimes, as well as with Brazil, which has been led by center-left governments,” he pointed out.
“It’s important to recognize that, regardless of who is in power, China’s primary concerns will remain the same: long-term stability, the ability to carry out projects, and the capacity to repay debt,” Rosales added. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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