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Chinese Private Sector Has Lost Billions in Venezuela

Well-known Chinese news site Sina recently reported that, so far, based on the latest statistics, investors from China’s private sector have lost US$3 to US$5 billion in Venezuela. Venezuela is China’s biggest investment destination in Latin America. After years of an unstable situation in that country, most of the Chinese investments were already in deep trouble. Only some projects that resulted from government agreements are still enduring. Since it can no longer obtain loans on the open market, due to the recent Trump sanctions against Venezuela, that nation is sliding deeper into chaos. In 2007, China and Venezuela established the Joint Chinese-Venezuelan Fund. Over the past decade, the overall funds totaled around US$40 billion, with the investments focusing on infrastructure as well as economic growth. In 2010, China provided an additional US$20 billion loan to Venezuela to obtain a sustained oil supply. Most of the private Chinese investors did not participate in the projects that these funds financed. As of now, nearly all the companies in this category have completely withdrawn from that market. According to a 2015 study that the Chinese Academy of Social Sciences (CASS) did, Venezuela is the riskiest investment destination for China. It is worse that Iraq and Sudan.

Source: Sina, August 30, 201