China, Venezuela ink 38 agreements, including oil deal
July 22, 2014, 4:54 am

Chinese President Xi Jinping (L) is awarded Liberator Medal by his Venezuelan counterpart Nicolas Maduro in Caracas, Venezuela, July 20, 2014 [Xinhua]

During the leadership of its late iconic leader Hugo Chavez, Venezuela expanded its use of loan-for-oil agreements with China.

At a joint press conference in Venezuelan capital Caracas, President Nicolas Maduro said this arrangement “doesn’t create a heavy debt burden like the old systems.”

Pledging closer economic ties with oil-rich Venezuela, Chinese President Xi Jinping held talks with the South American leader Maduro and also laid a wreath at the tomb of the late South America liberator Simon Bolivar in Caracas earlier on Sunday.

The two sides signed a total of 38 agreements covering such areas as energy and mining, finance, infrastructure and agriculture.

The two sides agreed to boost the Joint Chinese-Venezuela Fund, which focuses on infrastructure and economic development in the country.

“We…admire the great achievements China has made in the cause of socialism with Chinese characteristics and believe that China will play a greater role in promoting world peace and development,” Maduro told Xi.

China-Venezuela bilateral trade increased from $1.4 million 40 years ago when diplomatic ties were first established to a whopping $19.2 billion in 2013.

The two leaders have agreed to develop multi-tiered cooperation in the fields of finance, investment and energy.

China will expand satellite technology transfer to Venezuela and encourage Chinese companies to participate in the construction of Venezuela’s special economic zone, Xi announced after the meet.

Earlier this year, Venezuela renewed a $5 billion credit line with China that will be repaid in oil and other fuels.

Xi will now travel to Cuba, the last leg of his South American trip which also took him to Brazil and Argentina.

TBP and Agencies