China has intensified its diplomatic pressure on Venezuela to repay a historic debt estimated between $10 billion and $20 billion, largely contracted during the governments of Hugo Chávez and Nicolás Maduro. The demand comes amid Venezuela’s current political and economic uncertainty, as declining oil production further complicates Caracas’ ability to meet its international financial obligations.
The Asian giant, one of Venezuela’s main creditors over the past two decades after providing more than $60 billion in oil-backed loans, is now seeking clear repayment guarantees and formal participation in any future debt restructuring negotiations.
This shift marks a significant change in the bilateral relationship, as China moves from being a strategic partner to firmly demanding that long-standing financial commitments be honored, even as Venezuela has lacked transparent debt disclosures since defaulting in 2017.
What impact could China’s demand have?
It could force Venezuela to negotiate simultaneously with all its creditors, further complicating the country’s fragile economic situation and limiting its chances of accessing new financing.