CHINA AND VENZELA
Oil Imports & Trade
Venezuela has been a supplier of crude oil to China traditionally a small share of China’s total imports (about ~2 4% of crude oil) compared with Middle East sources.
Because oil supplies are globally abundant, China is unlikely to face immediate disruptions in energy supply.
Loans and Investments at Risk
Over years, Chinese state banks and companies provided tens of billions of dollars in “loans for oil” deals with Venezuela. Disruption could jeopardize those credits and future repayment or control over projects.
Infrastructure and extraction projects tied to those loans now face uncertainty due to political instability.
Financial Risk Monitoring
Chinese financial regulators have begun pushing banks to disclose and monitor risks tied to Venezuelan loans and exposure due to the crisis
