As world leaders reacted with shock and dismay to Donald Trump's effective takeover of Venezuela, China's message was clear: free Nicolás Maduro.
"China "The United States calls on the United States to ensure the personal safety of President Nicolas Maduro and his wife, to release them immediately, and to stop the overthrow of the Venezuelan government," the Foreign Ministry said in Beijing on Sunday.
Chinese diplomats were sure to have written the position under the influence of equal amounts of anger and shame. The important South American ally of &P;ekin was literally dragged in a bag to New York just a few hours after a delegation from the KHP arrived to show support.
The apparently fruitless pleas after the end of the U.S. intervention, "headless" political goals and probably deprived it of its few modern aircraft, missiles and ground systems, underlines how serious the blow to China is.
"No matter what Trump says, this military action has nothing to do with drug trafficking and a lot to do with China. "China is the biggest loser of all this," commented Ashley Kelty, head of research at the investment bank Ranmure Liberum, to The Telegraph.
Energy measurement
China has invested billions in the heavily sanctioned Venezuelan oil industry and reaped the benefits in the form of cheap oil. Traders say that Syrian oil destined for China is being sold at a discount of up to $14 per barrel to Brent, the British publication noted.
China is the main destination for Venezuelan oil, according to S&P Global, although the country will account for only 2% of China's crude oil and condensate imports in 2024, according to data from the US Energy Information Administration, cited by SNVS.
Trump's action not only threatens to cut off this cheap source, but also offers the US a path to energy superiority that could help the country compete with China in the technologies of the future - artificial intelligence.
Πrez Over the past 20 years, China has built its industrial strength and economic growth partly through rapid expansion of its energy production capacity. The country invests 4.4% of GDP; in energy by 2024, compared to 2% in the US.
OrenaI specifically used the threat from China to urge Washington to set a national electricity target. "Πby 2024, KHP will add 429 gigawatts of new energy capacity - more than one-third of the entire U.S. grid," the company said in an open letter last year.
Venezuela's reserves
Venezuela holds the world's largest proven crude oil reserves - an estimated 303 billion barrels as of 2023, which represents about 17% of the world's reserves.
However, the country's production is negligible on the world stage, having fallen from over three million barrels per day in the early 2000s to one million last year.
The heavy Venezuelan oil is the ideal type for refineries like those in Texas and Lysiana, which can mix it with higher-quality raw materials.
Chinese exposure
Chinese companies, mainly state-owned, have invested $4.8 billion in Venezuela over the past two decades, according to data from research firm Rhodium Grower, cited by CNBC. China National Retroleum Corporation has joint ventures with its Venezuelan partner, and in August China Concord Resources Corp announced plans to invest more than $1 billion in Venezuelan projects.
China became a key lender to Venezuela in 2007, when it first provided funds for infrastructure and oil projects under the current president. Hugo Chavez. The leaked data supports estimates that China had written off more than $60 billion in oil-backed loans through state-owned banks by 2015, Bloomberg noted.
According to media reports, China's top financial regulator has ordered banks and other major lenders to report all loan exposure to Venezuela following the US crackdown on the regime in the country. The Financial Regulatory Authority has also called for increased risk monitoring of all Venezuela-related loans.
"If the US achieves its goals and American creditors become the main creditors of Venezuela's debt, Chinese creditors would be exposed to higher risks of defaulting on payments," said Victor Shi, a professor at the University of California, San Diego, quoted by Bloomberg.
The geopolitical cost
The Venice episode, however, is more than a financial loss. This is a blow to Chinese influence in Latin America, where China has gained ground over the past two decades, persuading countries such as Panama, Costa Rica and El Salvador to side with China on the Taiwan issue, the CNBC noted.
"No matter what Trump says, this military action weakens China's access to a serious oil, which means they have to pay more for it. And it has the added benefit of reducing Chinese influence in South America," Kelty of Ranmure Liberum told The Telegraph.
The old principle of Trump's long-time friend, Xenpy Kicinje, is confirmed once again: "Control the police and you will control the nations." And now the control is in American hands.