The President of Venezuela, Hugo Chavez, was on a diplomatic path with China this past Wednesday. He met with the President of China, Hu Jintao, to give the nation praise for their growing economic success and importance in the world. Chavez stated, “During the financial crisis, China’s actions have been highly positive for the world. Currently, China is the biggest motor driving the world amidst this crisis of international capitalism.” He continued his praise for China stating that the center of gravity of the world is now China. What does Chavez hope to gain by such a bond with China? It is apparent that China represents one of the most capable economic bodies in the world.
During the meeting, Chavez sought to increase Chinese investment in his oil industry while also setting up plans to place oil refineries in China. Lastly Chavez sought to build an oil transport venture whereby China and Venezuela would both profit.
China has a history of trade with Chavez. In 2008, China imported 380,000 barrels of oil per day from Chavez. However Hugo is now seeking to hit the 1 million mark within the next four years.
Is an alliance a dangerous concept between Venezuela and China? Two communist nations are undoubtedly stronger than 1. Should we be weary of trade and increasing ties between these two countries? What could we do to deter their relationship?
