China’s Expanding Role in Venezuela’s Oil sector Amid US Sanctions

China's influence grows in Venezuela's oil and mining industries, potentially reshaping the region's economic landscape. Explore the details of China's expanding role.">

as U.S. sanctions intensify on Venezuela, China is stepping in to fill the void, significantly increasing its involvement in the nation’s oil and mining sectors. This shift raises concerns about Venezuela’s economic dependence on Beijing and the potential long-term implications for the region. The U.S.government’s actions, including the elimination of licenses for oil companies operating in Venezuela, have inadvertently opened the door for China to expand its influence ^[1].

The Impact of US Sanctions on Venezuela’s Oil Exports

The Trump governance’s decision to reinstate sanctions on Venezuela’s state-owned oil company, PDVSA, has reshaped the landscape of its oil exports. Before the initial wave of economic and financial sanctions in 2017, the U.S. imported approximately 800,000 barrels of Venezuelan oil per day. By 2019, under the “maximum pressure” strategy, this figure plummeted to zero. A similar situation occurred in May 2025,when the Treasury Department’s office of Foreign Assets Control (OFAC) blocked Chevron,Repsol,and other companies ^[2].

Did You Know? The U.S. Energy Data administration (EIA) reported that U.S. crude oil imports from Venezuela averaged 41,000 barrels per day in 2018, a significant drop from previous years.

China Emerges as the Primary Buyer

With customary buyers restricted by U.S. sanctions, Venezuela has increasingly turned to China. While Caracas previously secured agreements with companies like Rosneft and indian buyers, secondary sanctions and tariffs have left China as the primary, and often only