China supports Venezuela’s efforts in restructuring its economy and places great emphasis on manufacturing.”
to billions of dollars in loans for Venezuela.
There was no immediate information about whether Beijing has promised additional loans to the country.
Venezuela, which is estimated to have the world’s largest oil reserves and gets 96 percent of its foreign currency from oil exports, confirmed last week that it has entered a recession.
High inflation and shortages of basic goods have spread pessimism about the ability of Caracas to meet debt obligations as oil prices have hit five-and-a-half-year lows, shrinking government revenue.
Wu Baiyi, head of the Institution of Latin American Studies at the Chinese Academy of Social Sciences, said Beijing is likely to offer more loans to Caracas during Maduro’s visit as their partnership allows China to lend support at a critical time.
“But China would like Caracas to spend the funds in the most needed areas instead of just solving today’s emergency, and that means developing a more sustainable, high-quality economy,” Wu said.