As President Donald Trump intensifies his ‘zero tolerance’ stance against narco-states in the Americas, China is solidifying its economic and strategic foothold in Venezuela through a landmark zero-tariff trade agreement. The deal, announced by Venezuelan Deputy Minister Coromoto Godoy at the Shanghai Expo 2025, removes tariffs on over 400 goods, marking a significant shift in regional trade dynamics. U.S. officials, including the deployment of the USS Gerald R. Ford aircraft carrier strike group, have raised concerns about China’s growing influence, with the Pentagon emphasizing its mission to dismantle transnational criminal networks linked to Venezuela’s military.
While China’s economic leverage is undeniable — with over $60 billion in loans to Venezuela since the 2000s — experts warn that the trade agreement risks further entrenching Beijing’s control over Venezuela’s resources and economy. Analysts argue that the accord is not a solution for Venezuela but rather a calculated move to strengthen China’s strategic position in the Western Hemisphere. The U.S. response has been swift, with military assets, including bombers, Marines, and warships, converging near Venezuela as part of a broader effort to monitor and disrupt illicit activities.
Chinese officials have dismissed U.S. sanctions against Venezuela’s oil exports as ‘illegal extraterritorial actions,’ but the real challenge lies in navigating the political and economic complexities of this deepening U.S.-China rivalry. China’s new trade deal with Venezuela could serve as a blueprint for other countries under U.S. pressure, but it also raises serious questions about Venezuela’s sovereignty and the long-term consequences of such economic dependency. Meanwhile, the Maduro government, facing both internal and external pressures, continues its efforts to stabilize the economy and counter what it perceives as Western encroachment.
Analysts suggest that this growing Chinese presence in Venezuela is not just an economic move but also a strategic one, as Beijing seeks to expand its influence in the Western Hemisphere amid rising tensions with the United States. The situation highlights the complex interplay of geopolitics, economic interests, and the broader ramifications of U.S. foreign policy in the region. As both nations continue to maneuver, the future of Venezuela’s economy and its relationship with global powers remains uncertain.