Archive · 6 Sep 2026
US Control of Venezuelan Oil Threatens China’s Billions
The United States is trying to gain control over oil production in Venezuela.
Venezuela has owed a lot of money to Chinese banks for oil and infrastructure projects.
The United States says new oil revenue should not be used to repay China.
This could make it harder for Venezuela to pay its debts.
China says its legal rights and business agreements should be protected.
Chinese companies have already reduced their involvement in Venezuela.
However, some Chinese oil refiners still depend on Venezuelan heavy crude.
The dispute could create more competition between the United States and China in South America.
The Trump administration plans to control more than 65 billion barrels of Venezuela’s crude reserves and limit rival powers’ involvement.
US Energy Secretary Chris Wright said China will not receive revenue from new Venezuelan oil production, potentially complicating debt repayment.
Venezuela was believed to owe Chinese banks at least $10 billion in 2025, down from more than $60 billion in oil-backed lending by 2015.
China’s share of Venezuelan oil imports has declined, with Venezuelan crude accounting for 4% of China’s total oil imports in 2025.
Chinese officials said Beijing’s legitimate rights in Venezuela must be protected, while analysts warned the move could increase US-China friction in South America.
- Who
- The Trump administration, Venezuela, China, Chinese banks and energy companies, and Chinese refiners are central to the dispute.
- What
- The United States is seeking control over Venezuelan oil assets and plans to exclude China from revenue tied to new production, threatening Chinese debt claims and oil supplies.
- When
- The developments were announced earlier in the year and during the week described in the report; the article also refers to President Xi Jinping’s planned US visit later that month.
- Where
- Venezuela, with effects on China and broader US-China relations in South America.
- Why
- The United States says it wants to prevent rival powers from controlling strategically important assets and reinforce American dominance in the hemisphere.
United States Position
China’s Position
Control of Venezuelan oil assets
United States Position
The United States frames control over strategically vital Venezuelan assets as part of the Donroe Doctrine and a way to prevent rival powers from controlling them.
China’s Position
China says cooperation between China and Venezuela is protected by international law and does not concern any third party.
Debt repayment and oil revenue
United States Position
US Energy Secretary Chris Wright said China will have no claims on revenue from new Venezuelan production, which could prevent that revenue from being used for debt repayment.
China’s Position
China’s financial claims and interests should be protected; analysts said excluding China could make repayment of Venezuela’s debt less likely.
Strategic consequences
United States Position
The United States presents the campaign as an effort to secure American dominance in the hemisphere and counter powers it labels malign foreign actors.
China’s Position
Chinese analysts and officials view the policy as a possible example of coerced exclusion that could increase friction where US and Chinese interests overlap in South America.
- Venezuelan crude reserves
- More than 65 billion barrels are covered by the Trump administration’s announced plans for control.
- Estimated debt to China
- Venezuela was believed to owe Chinese banks at least $10 billion as of 2025.
- Earlier Chinese lending
- Chinese state banks had extended more than $60 billion in oil-backed lending to Venezuela by 2015, according to publicly available data.
- Chinese oil imports
- Venezuelan crude represented 4% of China’s total oil imports in 2025.
- US energy deal
- The United States negotiated a 35% stake in North American Blue Energy Partners, providing access to 17 Venezuelan oil fields.
- Chinese response
- Foreign Ministry spokesperson Guo Jiakun said China’s legitimate rights and interests in Venezuela must be protected under international law.
- Potential supply impact
- The loss of Venezuelan heavy crude has tightened China’s domestic bitumen market and helped push futures prices higher.