VENEZUELA & CHINA CONTINUE TO DEEPEN THEIR ALLIANCE

Venezuela and China Consolidate
“Strategic Alliance,” Expand Bilateral Trade

Public accords signing ceremony in Caracas, taken from Venezuelan TV

Published on December 25th 2009
by James Suggett -
Venezuelanalysis.com

Mérida, December 24th 2009 (Venezuelanalysis.com) –
Venezuelan and Chinese government officials and business
leaders met in Caracas this week to discuss bilateral
relations. As a result of the accords signed at the
meeting, Venezuela will increase its supply of oil to China
to more than 600,000 barrels per day next year, and China
will increase its investments in Venezuelan agriculture,
infrastructure, mining, and energy production.

In a press conference, Venezuelan Planning and Development
Minister Jorge Giordani called Venezuela’s growing economic
relationship with China “a consolidated strategic alliance
based on the premise of equality and mutual respect that
will be consolidated even more by two countries that have a
shared vision of a multi-polar world.”

Venezuelan President Hugo Chavez vowed to supply China with
“all the oil it needs for its development and advancement”
and said Venezuela hopes to eventually supply a million
barrels of oil per day to China. According to Telesur,
Venezuela is currently China’s fourth largest oil supplier.

In addition, China’s Sinohydro Corporation and Venezuela’s
state electricity company CORPOELEC agreed to cooperate to
increase Venezuela’s hydroelectricity production. Venezuela
has experienced rolling power outages over the past three
months as a result of drastically increased demand and a
drought that caused a drop in the water level at a
principal dam.

The Chinese Development Bank Corporation also pledged a $1
billion credit for Venezuela’s state-owned mining company,
CVG, and Chinese state-owned and private companies agreed
to invest in Venezuelan railways, fish and shrimp
production.

Venezuelan Trade Minister Eduardo Saman said he expects an
increase in Venezuela’s imports of Chinese cars, electric
appliances, pharmaceuticals, and other goods over the
coming years, and that this will help to combat domestic
price speculation.

In recent years, China and Venezuela have created mixed
enterprises, in which Venezuela maintains a 60% controlling
share, to explore for, extract, refine, and transport oil
from Venezuela’s Orinoco Oil Belt, as well as to explore
for natural gas off the Venezuelan coast.

Last year, China built and launched Venezuela’s first
telecommunications satellite, and Venezuelan students are
studying aerospace engineering in Chinese universities.

Since 2003, annual trade between the two countries has
increased from less than a half a million dollars to
approximately $5 billion in 2008. In addition to this,
China and Venezuela have signed $5 billion worth of planned
Orinoco oil accords, and created a $12 billion bilateral
investment fund for future projects.

President Chavez said the unprecedented growth in bilateral
relations between Venezuela and China has the goal of
creating a “balance in the world, a pluri-polar world,” in
which there is no single dominant super power such as the
United States. He said China “has demonstrated that it is
not necessary to attack those who are weakest in order to
be a great power.”

Since Chavez’s election in 1998, Venezuela has increased
its economic relations with countries in almost every
region of the world, including Africa, Southeast Asia, the
Middle East, and Eastern and Western Europe, and Latin
America.

MORE ON CHAVEZ'S TRIP TO CHINA

Chavez says China part of 'new world order'

By CHRISTOPHER BODEEN – 3 hours ago

BEIJING (AP) — Venezuelan President Hugo Chavez says his two-day visit to Beijing this week is part of the creation of a "new world order."

The frequent U.S. critic, who met with China's president and Communist Party leader Hu Jintao on Wednesday, told reporters that power in the world was shifting from America to countries such as Iran, Japan and China.

"We are creating a new world, a balanced world. A new world order, a multipolar world," Chavez said after arriving Tuesday evening.

"The unipolar world has collapsed. The power of the U.S. empire has collapsed," he said. "Everyday, the new poles of world power are becoming stronger. Beijing, Tokyo, Tehran ... it's moving toward the East and toward the South."

Chavez continued his theme in his meeting with Hu, telling the president that "no one can be ignorant that the center of gravity of the world has moved to Beijing."

"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," Chavez said in preliminary remarks before reporters were ushered from the room.

Chavez has made Beijing a frequent stop in his global travels to promote his agenda of anti-American world unity, stopping in the Chinese capital six times since taking power in 1998 elections.

His visit follows a sweep through the Middle East last week, including a stop in Iran where he said he has little hope of better relations with Washington under President Barack Obama because the United States was still acting like an "empire" in his eyes.

While China's Communist leaders have been low key in their response to Chavez's political rhetoric, Beijing's state-run industries have been eager to use Venezuela as a jumping-off point for their entry into South America. Chinese companies in the mining and petroleum sector have been especially eager to secure South American mineral resources.

During his visit, Chavez said he planned to review with Chinese leaders a goal of boosting exports of Venezuelan oil to China from 380,000 barrels last year to 1 million barrels by 2013 — part of Venezuela's strategy of diversifying oil sales away from the United States, which buys about half the South American nation's heavy crude despite political tensions.

Included in that strategy are plans for China and Venezuela to build four oil tankers and three refineries in China capable of processing Venezuela's heavy, sulfur-laden crude.

China and Venezuela have also invested in a $12 billion fund to finance joint development projects in areas including oil production, infrastructure and agriculture.

VENEZUELA AND CHINA UNITE AND CONTRIBUTE TO THE DEVELOPMENT OF A MULTI-POLAR WORLD

China, Venezuela to step up co-op in bid to curb global financial crisis

www.chinaview.cn 2009-04-08

Chinese President Hu Jintao (R) meets with Venezuelan President Hugo Chavez at the Great Hall of the People in Beijing, capital of China, on April 8, 2009. (Xinhua/Rao Aimin) Photo Gallery>>>

BEIJING, April 8 (Xinhua) -- China and Venezuela agreed here Wednesday to step up cooperation in fields such as energy, agriculture, and high technology and take joint actions in the face of the global financial crisis.

The agreement was reached in a meeting between Chinese President Hu Jintao and his visiting Venezuelan counterpart Hugo Chavez. The Chinese Foreign Ministry said the two exchanged in-depth views on bilateral relations and other issues of common concern and reached an important consensus.

Hu highlighted the robust growth of bilateral relations during the meeting, saying that China was satisfied with the positive outcomes from bilateral economic and technological cooperation, progress made on some key projects and close coordination on international and regional issues.

Hu also suggested the two nations should work closer and boost the various pragmatic cooperation, which would not only help resolve the impact from the international financial crisis, but also be conducive to laying a solid foundation for the long-term development of Sino-Venezuelan relations.

China highly values its ties with Venezuela and will join hands with the Venezuelan side to make efforts to push forward the bilateral strategic partnership to a higher level, Hu said.

Echoing Hu's views on bilateral relations, Chavez also applauded the progress made on bilateral cooperation in energy, agriculture, industry and technology.

He especially mentioned the successful launch and delivery of Venezuela's first telecommunication satellite thanks to cooperation with China.

Chavez noted that the world order is undergoing a profound change and China already played a significant and positive role in an effort to address the challenges posed by the international economic turmoil.

Venezuela is willing to cement its cooperation with China in such a new international context, the Venezuelan president added.

As Hu's guest, Chavez arrived in Beijing on Tuesday night for a three-day working visit.

He will also meet Chinese Vice President Xi Jinping during the visit, which is his sixth to China.

CHAVEZ: “Thank God there is a revolution in China; thank God there is a revolution in Venezuela; thank God we met each other and we shook our hands"

The Strategic Fund China-Venezuela
to be injected with 12 billion dollars
in three years

ABN 24/09/2008 Caracas,

Caracas, Sept 24. ABN.- The President of the Bolivarian
Republic of Venezuela, Hugo Chávez Frías, informed that in
three years 12 billion dollars will be injected to the
Strategic Fund China-Venezuela.

During his fifth visit to China, Chávez explained that he
sent the request to China three months ago and he will take
advantage of his visit to renew the fund.

President Chávez detailed that in a first stage, China
contributed with 4 billion dollars and Venezuela with 2
billion. “These resources are being invested in the country
(Venezuela) in hundreds of small and medium works that are
currently under construction.”

“Chinese Government, with a prove of friendship and
confidence to Venezuela, has answered positively,” he said.

Venezuelan Head of State commented that China and Venezuela
are able to resist the consequences of the current crisis
of the capitalism because both countries had and have
revolutions; and, thanks to that, it is also possible the
close bilateral relation that has been developed since
almost a decade ago.

He reminded that the relation went stronger when both
countries decided to establish a strategic alliance and
demonstrate that Venezuela and China could create strong
links despite geographical distance and the excuses of some
people saying it was impossible to send oil to that
country.

“They kept us tied to the empire. We were a colony. The
Government was not in Caracas, but in Washington,” Chávez
said explaining the dependence Venezuela had to the North
American market.

“Now, we are free to travel to Beijing. We are working to
increase the oil processing to China,” he stressed.

“Soon, we will reach 400,000 barrels a day (sent from
Venezuela to China), then 500,000 barrels next year, and we
are going to keep working until we reach 1 million barrels
a day,” he said.

Chávez explained that to face worldwide energy crisis,
Venezuela and China are increasing their trade and
relations in oil sector with agreements to build refineries
and tank ships, as well as increasing oil supply to China.

In reference to the financial crisis, President Chávez
insisted that, nowadays, when there are banks going to
bankruptcy and it is so hard to get a credit, both
countries decided to double their joint fund of 6 billion
dollars in order to support the development in sectors like
energy, housing, sanitation, aqueducts, agriculture, among
others.

Regarding food crisis, Chávez pointed out that both
countries keep a close cooperation in agriculture and food
industry since two years ago.

“All of them (the agreements) allow us to overcome the
(worldwide) crisis,” said Chávez with respect to the
bilateral cooperation, while the world is passing through
hard moments.

“Thanks God there is a revolution in China; thanks God
there is a revolution in Venezuela; thanks God we met each
other and we shook our hands,” he insisted.

Translated by Ernesto Aguilera

CHINA-VENEZUELA DEVELOP STRATEGIC ALLIANCE

"Maoist" Chavez eyes closer China

By Emma Graham-Harrison

BEIJING (Reuters) - Venezuelan President Hugo Chavez on
Tuesday unveiled early plans for two new refinery projects
in China, kicking off a visit to the energy-hungry nation
that could aggravate stormy ties with top oil user the
United States.

Fiery leftist Chavez paid tribute to China's autocratic
late leader Mao Zedong minutes after stepping onto Chinese
soil, and said he hoped to build a joint tanker fleet and
nearly double oil exports to the world's number two
consumer next year.

"We are talking about three refineries, to bring our crude,
which is heavy, and process it here in China," he told
journalists beside his official plane.

"We are also working on a project to construct a joint
Chinese-Venezuelan oil fleet."

China is cautious about handing out permits for refineries,
which are highly sought after by foreign oil companies and
crude-producing nations itching for access to its vast
markets.

The two countries in May agreed to build a 400,000 barrels
per day (bpd) plant in southern Guangdong province, the
first such investment deal between Caracas and Beijing. It
would be unprecedented for China to approve two more in the
near future.

But Chavez does have large amounts of oil to offer in
return, and the self-styled revolutionary and florid critic
of Washington is keen to reduce his nation's traditional
reliance on energy markets in the United States.

China's big energy appetite and Communist Party government
make it an attractive alternative. Chavez has visited China
five times over the last decade and often plays up
political ties between the nations, which contrast with his
ideological war against the "imperialist" regime in
Washington.

"We are in the land of Mao Zedong and I pay tribute to him.
I am a Maoist," he announced to journalists and a
bemused-looking Chinese policeman on the airport's VIP red
carpet, before recommending Bolshevik leader Vladimir
Lenin's book 'Imperialism: The Highest Stage of
Capitalism'.

China's current reformist leaders are respectful of Mao as
the country's revolutionary founder but, now focused on
capitalist-friendly policies, avoid praising his visions of
farming communes and perpetual revolution.

BUSINESS NOT POLITICS

Chavez's colorful rhetoric contrasts with the cautious,
muted tone of Chinese diplomats who prefer to focus on the
business side of the two nations' ties.

"Sino-Venezuelan relations have no ideological hue, are not
aimed at any third party and do not affect Venezuela's ties
with any other country," foreign ministry spokeswoman Jiang
Yu told a regular news conference on Tuesday.

But the nature and value of the socialist nations' growing
embrace may anyway spark concern in the United States,
which gets around 10 percent of its oil from Venezuela.

Chavez earlier this month threatened to cut off supplies to
the United States "if there were aggression against
Venezuela" and warned that doing so would push crude prices
above $200 a barrel. But Caracas would need to find a new
buyer for exports that in the five months to May were near
1 million bpd.

Beijing lent Caracas $4 billion this year and the two have
signed a deal to produce and upgrade the country's heavy
oil that will cost around three times as much, or $12
billion.

China will launch Venezuela's first satellite this year and
Chavez said in May he planned to buy Chinese military
training planes, expanding recent arms purchases.

Jiang declined to comment on any deals that might be
signed, but Chavez said more than 20 were drawn up,
covering areas from food cooperation to telecoms and
energy.

He added that Venezuela aims to increase oil exports to
China to 500,000 bpd next year, from around 300,000, and
hit 1 million bpd in four years.

If they can meet Chavez's target for China sales next year
they would supply over 6 percent of the country's oil, but
although imports have risen strongly this year customs data
suggests that Caracas may have set itself a difficult goal.

Venezuelan crude imports over the first eight months
climbed by more than 60 percent compared with a year
earlier, but were still only 5.18 million tonnes, or
155,000 bpd. Export volumes were boosted by nearly 3
million tonnes of diesel and fuel oil.

CHAVEZ: 'CHINA ARE SOLDIERS OF PEACE'

Chávez, China Agree to Build Oil Refineries

WSJ

BEIJING -- China and Venezuela agreed to jointly build two
oil refineries, one in each country, Venezuelan President
Hugo Chávez said Tuesday.

Speaking to journalists on the first day of a two-day
official visit to China, Mr. Chávez said the refinery to be
built in Venezuela will be located in the oil-rich region
of the Orinoco Basin. A formal agreement on the issue is
expected to be signed during Mr. Chávez's stay in China.

China is already building a refinery to process Venezuelan
oil, following an agreement reached this year. Mr. Chávez
didn't provide details on when or where the second Chinese
refinery would be built.

"Venezuela has enough oil to last for 200 years," Mr.
Chávez said. "And the Chinese are already working to tap
that."

He hopes to bolster ties with China through increased oil
sales, partly to reduce dependency on the U.S., which still
buys about 60% of Venezuelan exports despite years of
tensions.

"China is showing the world that it isn't necessary to harm
anyone to be a great power. They are soldiers of peace," he
said, according to a Venezuelan government statement. Asked
about his absence from talks this week on the sidelines of
the United Nations in New York, Mr. Chávez said: "It's much
more important to be in Beijing than in New York."

China is the second stop in a six-country tour that Mr.
Chávez started in Cuba on Sunday. Mr. Chávez and his
Chinese counterparts are also expected to discuss a joint
$6 billion investment fund the two sides agreed to this
year. He plans to fly Thursday to Russia, and then to go on
to Belarus, France and Portugal.

The trip comes amid stepped-up confrontation with the U.S.,
including Russia's dispatch Monday of a naval squadron to
hold joint maneuvers with Venezuela's navy. The deployment
of Russian military power to the Western Hemisphere is
unprecedented since the Cold War and follows a weeklong
visit to Venezuela by a pair of Russian strategic bombers.

"The only thing we demand is that our nation be respected,"
Mr. Chávez said. "We're no longer the backyard of the
United States."

PRC - VENEZUELA - AFRICA - MULTIPOLAR STRATEGY

Foreign Policy with a Multipolar Vision
Noticias

The Venezuelan Foreign Affairs Vice-minister for Africa
Reinaldo Bolívar mentioned the multipolar vision of the
Bolivarian Government’s foreign policy and stressed that
“Venezuelan will be always willing to provide the greatest
possible humanitarian help to Africa in the event that this
continent be victim of natural disasters or wars.”

Bolívar informed that Venezuela has recently talked to the
authorities of the People’s Republic of China in order to
develop triangular relations in favor of Africa’s political
and economic development.

“The result has been positive; we have even received
specific gestures through the Chinese Embassy to Ethiopia,
which has cooperated with the school equipment of the
schools sponsored by Venezuela,” Bolívar explained.

The Venezuelan official highlighted that the importance of
an alliance with China is due to the huge presence of this
Asian nation in the African continent.

“China buys 40% of its oil form Africa, and in the recent
years it has considerably invested in infrastructures,
construction of bridges, hospitals and roads,” assured
Bolívar.