In mid-September 2023, Chinese President Xi Jinping rolled out the red carpet for Venezuelan President Nicolas Maduro in Beijing. This meeting was a historic event in the diplomatic history between China and Venezuela. Their meeting raised their relationship to an “all-weather strategic partnership.” This term deliberately channels “Belt and Road Initiative” to indicate the extent to which the two countries are deepening their cooperation. This partnership comes at an important time for Maduro. He finds himself facing increased condemnation and growing discontent in Venezuela in the wake of highly dubious election results.
In the midst of their high-level talks, Xi Jinping offered complete support to Maduro, as the latter continues to weather a deeply polarized political landscape back home. After the recent election, large-scale protests quickly filled the streets of Venezuela, sparked by accusations of fraud and a yearning to see change from the Chavismo regime. The West, too, has steadily undermined Maduro’s government in the process, making his standing at home and abroad all the more precarious.
Despite the strong political support from China, Chinese firms seem to be more hesitant about investing in Venezuela. The Chinese central government has shown a strong commitment to supporting the Maduro regime. Private companies are reluctant to invest in the Venezuelan market. That fear might make them wait out of concerns about the bottom line. They worry about the risks of doing business in a country going through tremendous political and social upheaval.
The “all-weather strategic partnership” reflects both countries’ long-term agreement to deepen economic relations and increase collaboration in fields as diverse as technology and education. Both leaders underscored growing cooperation in diverse sectors including energy, trade and infrastructure development. Chinese companies have been somewhat lukewarm on investment. This dearth of follow-through begs the question of just how doable these grandiose plans actually are.
Xi’s support for Maduro stands in stark contrast to the reaction from Western nations, which have largely condemned the Venezuelan government’s actions. China’s approval provides Maduro a crucial lifeline as popular discontent within Venezuela continues to swell. It presents an opportunity to showcase China’s own strategic interests in the region. Taking the other side of the coin, China is actively building relations with Venezuela to increase its own influence in Latin America. Few places have experienced the growing pains of China’s rise more than this small region.