China and Venezuela sign mineral and oil deals.
Chinese President Xi Jinping signed a series of oil and mineral deals with the South American country of Venezuela. The deal includes a $4bn credit line in return for Venezuelan crude oil and other products.
The agreement was cemented by Xi Jingping on his last stop of a four country visit to Latin America. Xi has already signed the major share of deals in Argentina and Brazil and has now departed from Venezuela, with intentions of visiting Cuba in 2015.
The Chinese leader in Argentina agreed to an $11 bn currency swap and will provide money for the government of President Cristina Fernandez de Kirchner.
Argentina has been locked out of the international capital market ever since the 2001 default. The Chinese president also helped to launch the new development bank alongside other emerging BRICS powers – Russia, India, Brazil, South Africa at the BRICS summit in Brazil.
The new bank is intended to create an alternative to western dominated institutions such as the World Bank. Chinese trade in Latin America has grown rapidly over the last few years. It is now considered as the second largest trading partner in Argentina and Cuba and has been the largest in Brazil since 2009.
China is considered as the second largest market for Venezuelan oil after the United States. The president of China is now on his way to Cuba where he will meet President Raul Castro.
Photo Credits: Straitstimes