Venezuela: The US has detained the president through a military intervention, marking a significant shift in the control of Venezuelan oil from China to Washington. This development has dealt a blow to China, which had established strong economic ties with Venezuela, offering support against US sanctions.
According to Anadolu Agency - English, the US military intervention on January 3, which resulted in the detention of Venezuelan President Nicolas Maduro and his wife, has created uncertainty over the future use of the country's economic resources, particularly its oil reserves. This has also raised critical questions concerning China's political influence and economic interests in Venezuela.
Before the intervention, China was the principal buyer of Venezuelan oil, investing billions of dollars through oil-for-credit programs and enhancing political relations to a 'strategic partnership under all circumstances.' The relationship between China and Venezuela had developed rapidly amid US sanctions, with Venezuela exporting a substantial portion of its oil to China in exchange for debt relief and credit.
Venezuela holds the largest proven oil reserves globally, estimated at 303 billion barrels, accounting for approximately 17% of global proven reserves. However, the country's daily oil production plummeted from 3.5 million barrels in the 1970s to 1.1 million barrels last year, primarily due to governance issues, lack of infrastructure investment, and the impact of sanctions. Consequently, Venezuela's share of global oil production has decreased from 7% to 1%.
While under US sanctions, China became Venezuela's most significant oil buyer, importing an estimated average of 300,000 to 470,000 barrels per day. Data from Venezuela's national oil company, Petroleos de Venezuela s.a. (PDVSA), indicates that the country exported 952,000 barrels per day in November, before the US military blockade in December 2025. Of these, 778,000 barrels were shipped to China, representing an 81.7% share of Venezuela's oil exports.
China, the world's largest oil importer, sources most of its oil from the Middle East and Russia. Venezuelan crude accounts for about 4% of its total imports. As Venezuelan oil is subject to sanctions, it does not appear directly in China's official import figures and is believed to be shipped indirectly through other countries. Despite risks, smaller independent refiners in Shandong province process the Venezuelan crude, while China's major state-owned oil companies avoid it.
Chinese investments in Venezuela's oil sector remain substantial. The American Enterprise Institute reports that China has invested $2.1 billion in the industry since 2016. Morgan Stanley data shows that China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec) have significant stakes in oil consortiums. Additionally, China provided Venezuela with $106 billion in loans and investments between 2000 and 2023, with the China Development Bank alone extending $60 billion under oil-for-credit programs.
China's strategic partnership with Venezuela was emphasized during Maduro's visit to China in 2023, where bilateral relations were elevated, and support for Venezuela's participation in the BRICS bloc was sought. China viewed Venezuela as both a diversification source for energy supplies and a key partner amid geopolitical rivalry with the US.
The US intervention is seen by international media as an effort to curb China's growing influence in Venezuela and the wider region. Beijing condemned the use of force, calling for the release of Maduro and his wife, and an end to efforts to overthrow the Venezuelan government. Despite political changes, Chinese officials assured continued economic cooperation, stressing legal protections for their investments.
The revival of the Monroe Doctrine by US President Donald Trump, as part of his national security strategy, could further intensify global competition with China, opening new fronts of tension in the Western Hemisphere.