China sup­ports Venezuela’s ef­forts in re­struc­tur­ing its econ­omy and places great em­pha­sis on man­u­fac­tur­ing.”

China Daily (Canada) - - FRONT PAGE -

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.

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