Venezuela has assured Beijing that oil prices are not dependent on the United States and that Chinese investments in the South American country remain safe, state media said.
Remigio Ceballos, Venezuela’s ambassador to China, denied reports that the United States would influence the price China pays for Venezuelan oil at a press conference on Tuesday, saying Caracas would not abide by the US deal.
The Wall Street Journal reported last month that US President Donald Trump is considering exercising control over Venezuela’s state oil company Petroleos de Venezuela SA (PDVSA), including cutting prices to $50 a barrel.
“When it comes to oil prices, Venezuela does not listen to the agreements of the United States or other countries. We have the right to make independent decisions, and oil prices are determined based on international market prices,” Ceballos said.
The comments came about a month after the United States detained Venezuelan President Nicolas Maduro and his wife, Syria Flores, in a surprise military operation and sought to increase its influence over the country’s oil sector through sanctions and oil sales negotiations.
China, which has absorbed much of Venezuela’s oil exports at deep discounts due to U.S. sanctions, has condemned the U.S. military attack on Venezuela and called for Maduro’s release.
Ceballos described Maduro’s detention as a “warning to the whole world” but sought to downplay the impact on Venezuela-China relations. “China and Venezuela are reliable partners,” he said, adding that relations are built on mutual trust and are not dependent on third countries.
The ambassador also sought to ensure that China’s investments in Venezuela are safe. “Investments from Chinese companies and other countries operating in Venezuela continue to develop as usual. All areas of cooperation, not just the oil sector, are unaffected,” he said.
Maduro’s seizure raises concerns about the future of Chinese investment in Venezuela, as Beijing is one of the few active foreign companies in the South American country and has been bridging the gap after U.S. sanctions limited U.S. involvement.
According to Reuters, state-owned oil giant China National Petroleum Corporation, which has a joint venture with PDVSA, and privately held China Harmonization Resources Corp. announced plans in August to invest more than $1 billion in a Venezuelan oil project, aiming to produce 60,000 barrels per day by the end of 2026.
Venezuela has the world’s largest proven oil reserves, but crude production remains suppressed after decades of mismanagement, lack of investment and U.S. sanctions.
The Trump administration has touted the benefits of U.S.-led industrial reforms aimed at boosting oil and gas production and attracting foreign investment for Venezuela and its people. Increased oil production and lower prices will also help lower energy costs for U.S. consumers.
In testimony on Capitol Hill, Secretary of State Marco Rubio said the U.S. government’s involvement in Venezuelan oil sales was a short-term plan aimed at stabilizing the country and preserving the government’s survival.
Washington returned all $500 million from the first oil sale to the Venezuelan government, Reuters reported, citing U.S. officials.
The US government is also reportedly moving to issue general permits that would allow companies to trade, transport and refine Venezuelan crude oil, as part of efforts to ease sanctions and revive the ailing energy industry.
After the January 3 military operation, the White House reportedly called on Venezuela to cut economic ties with China, Russia, Iran and Cuba, according to ABC News.
But over the weekend, President Trump appeared to soften his stance, saying he welcomed investment from China and India. “China is welcome to come in and we’re going to make a big deal on oil,” he said Saturday on Air Force One en route to Mar-a-Lago.
Chinese President Xi Jinping told Uruguayan President Yamandou Orsi on Tuesday that China will work with Uruguay to build an “equal, orderly, and multipolar world.” Orsi became the first South American leader to visit China after Maduro’s arrest.
Chinese President Xi Jinping said on Tuesday that he would work with Uruguay to build an “equal and orderly multipolar world” during a meeting with Uruguay’s Yamandou Orsi, the first South American leader to visit China since Maduro’s arrest.
President Xi added that China has always attached great importance to relations with Latin American and Caribbean countries and supports their sovereignty, security and development goals.
