China to invest $20bn in struggling Venezuela
China has agreed to invest more than $20bn in economic, social, and oil-related projects in Venezuela, as the country struggles from a financial crisis brought on from falling oil prices.
President Nicolas Maduro said on Wednesday he was seeking to strengthen ties with Chinese banks after meeting Chinese President Xi Jinping in Beijing, a week after Caracas announced it was in a recession.
“We have wrapped up over $20bn in investments during the course of this day’s work,” Maduro told Venezuela’s official AVN news agency.
The sweeping investment deal covers a wide range of areas including technology, housing and urban planning, AVN said.
Maduro, however, did not say whether the latest investments include new loans for the cash-strapped OPEC member, or if the investments were part of an existing oil-for-loans deal between Venezuela and China.
Beijing has extended $42bn in long-term loans to Venezuela, $24bn of which has been paid out so far, according to Venezuelan officials.
Xi said that China, the world’s second-biggest economy which has been bolstering its diplomatic and economic reach in South America – had agreed to “strengthened cooperation”.
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