China flays US criticism of ties with Venezuela

China’ssupport for Venezuela has benefited ordinary people and been broadlywelcomed, the foreign ministry said yesterday after the US Treasuryaccused China of aiding Venezuelan President Nicolas Maduro’s governmentwith murky oil-for-loan investments.In a Friday speech at theCentre for Strategic and International Studies, the US treasury’s topeconomic diplomat, David Malpass, said China’s focus on commodities andopaque financing deals had hurt, not helped, countries in the region.Hisattack on China’s role in aiding the Venezuelan government came a dayafter US Secretary of State Rex Tillerson, ahead of a five-day tour ofLatin America, raised the prospect of a military coup in the oil-richcountry.Speaking in Beijing, Chinese foreign ministry spokesman GengShuang said financial co-operation between the two countries was set bycompanies and financial bodies in both nations on commercial, win-winprinciples.Loans were totally in accordance with international standards and benefited local people, he added.“What the US said is baseless and extremely irresponsible,” Geng said. Co-operationbetween China and Venezuela had supported the building of more than10,000 low-cost houses, electricity generation and the cost of householdappliances for 3mn Venezuelan homes on low incomes, he added.“China-Venezuelaco-operation has favourably promoted Venezuela’s socio-economicdevelopment and has been welcomed and supported by all levels ofsociety,” Geng said.“A stable Venezuela accords with the interests of all sides.”Chinalast week said the US was disrespecting Latin America after Tillersonwarned countries in the region against excessive reliance on economicties with China.The Trump administration has imposed individual andeconomic sanctions on Venezuela’s government for rights abuses andcorruption.Maduro has accused Washington of seeking to oust him to improve access to the Opec nation’s oil wealth.China and Venezuela have a close diplomatic and business relationship, especially in energy.China has repeatedly brushed off widespread condemnation from the US, Europe and others about the situation in the country.China has said it is confident in Venezuela’s ability to properly handle its debts.Venezuelahas borrowed billions of dollars from Russia and China, primarilythrough oil-for-loan deals that have crimped the country’s hard currencyrevenue by requiring oil shipments to be used to service those loans.Since2007, China has loaned more than $50bn to Venezuela through anoil-for-loans arrangement that helped Caracas reduce reliance on USenergy markets.But the flow of funds from Beijing has slowed since2014, when abundant crude oil led to a crash in oil markets and madeChina less interested in maintaining its alliance with Venezuela.