Beijing, Jan 13: China’s reliance on affordable energy imports is facing a dual crisis as U.S. tariff threats and the fall of the Maduro regime in Venezuela disrupt long-standing oil channels. The sudden instability in its two primary sources of discounted crude has sent shockwaves through Beijing’s policy circles.
The collapse of the Nicolas Maduro administration in Venezuela has brought an immediate end to a partnership that saw China invest over $106 billion in the Latin American nation. Data compiled by Kpler indicates that China was importing roughly 400,000 barrels per day from Venezuela at significant discounts before the regime fell.
“China will firmly safeguard its own legitimate and lawful rights and interests,” Foreign Ministry spokesperson Mao Ning said, reacting to the shifting geopolitical landscape. She mentioned that the country would not remain passive as its trade rights are challenged.
Compounding the loss of Venezuelan supply is President Donald Trump’s latest ultimatum regarding Iran. The U.S. administration stated that countries trading with Iran will face a 25 percent tariff on their American trade. This directly impacts China’s import of 1.38 million barrels of Iranian oil per day.
Analysts noted that these combined factors serve as a dire warning to Chinese leadership. They mentioned that the overnight end to Venezuelan allegiance and the potential cost of Iranian oil could cripple the “cheap energy” model that has supported Chinese manufacturing. The government is now reportedly reconsidering its approach to international sanctions and strategic investments to avoid further economic isolation.
