After the US abduction of Venezuelan leader Nicolas Maduro, Chinese entrepreneurs in the region say they are staying put—for now—but are more attuned to geopolitical risks. Two supertankers heading to load Venezuelan oil for China have made U-turns back to Asia, indicating trade disruptions. In Argentina, President Javier Milei confirms plans for a 2026 China trip despite US pressure to curb ties.
The US abduction of former Venezuelan president Nicolas Maduro has triggered a political crisis in the country, rippling through China-Latin America economic ties. Chinese entrepreneurs in the region say they are staying put—for now. An unnamed executive at a consumer goods manufacturer in China's eastern Zhejiang province said: “Recently, there has been a surge in promotional materials from various advisory firms touting overseas risk-mitigation strategies.” He noted that overseas expansion has been on the company's radar for years, highlighting the rising need for risk management, but the episode does little to slow the outward push driven by shrinking domestic opportunities and localisation benefits. Entrepreneurs emphasized that Latin America is not a monolithic bloc and requires tailored strategies for each country.
Meanwhile, LSEG shipping data showed on Monday that two China-flagged supertankers—the Xingye and Thousand Sunny—made U-turns and headed back to Asia after weeks of idling in the Atlantic Ocean. These unsanctioned very large crude carriers were sailing to Venezuela to pick up debt-paying crude cargoes. Last week, the US announced a deal to export up to 50 million barrels of Venezuelan oil stuck in storage. US President Donald Trump said China would not be deprived of Venezuela’s crude but did not elaborate on the supply mechanism. China, the biggest market for Venezuela’s oil, has not received any cargoes from state-run PDVSA since last month as Washington maintains the oil embargo is in force. Global trading houses Vitol and Trafigura are readying the first cargoes of the announced US$2 billion deal, to be sent to the US and other destinations including India and China—a process that could ultimately benefit China’s refiners if the traders negotiate with them. The tankers had remained anchored amid the blockade and Venezuela’s political crisis, triggered by the US capture of leader Nicolas Maduro. PDVSA did not immediately reply to a request for comment.
In Argentina, President Javier Milei confirmed in a Sunday interview with local newspaper Clarin his intention to travel to China in 2026, even as the United States steps up pressure on Buenos Aires to scale back relations with Beijing. He framed the visit as part of Argentina’s commercial agenda, saying: “We have a very good commercial relationship with China. And again, we have to try to trade with all the countries in the world. And everyone who wants to trade with us is welcome.” The remarks underscore a sharp shift from his 2023 campaign attacks on Beijing as an authoritarian regime and calls to sever state-to-state partnerships, to a more pragmatic stance after taking office.
