As China Seeks Leverage in Trade Negotiations Venezuelan Dictator Maduro Severs U.S. Relations

Elder Patriot – Earlier today Venezuelan President Nicolas Maduro gave American diplomats 72 hours to close up shop and exit the country.  The South American strongman announced he was cutting off relations with the United States.

For those with knowledge of China’s adventurism in South and Central America there’s no doubt that Maduro’s action was made under pressure from Beijing.

China’s strategy has been to loan massive sums of money to the failing socialist dictator in order to gain influence inside the western hemisphere.

Between China and Russia, they hold 49% of the state owned oil company Citgo as collateral against those loans.  

But Venezuela needs more money immediately and China (and, Russia) have been blocked by the Trump administration from engaging in commerce with Venezuela lest they be denied access to the U.S. banking system.

In retaliation, China has been covertly funding the Central American caravans invading the U.S. through our southern border.

Vice President Mike Pence explained the relationship between Venezuela, China, and Russia three months ago:


The Central American invasion forces that have been traveling our way has been ordered as a result of the strategic moves by President Trump that put the geopolitical and economic squeeze on both China and Russia.  (For those who desire a deeper understanding of the depth of President Trump’s geopolitical thinking the link is worth reading.)

Remember, President Trump is a master at finding leverage and oil plays a major role in the president’s strategy.

Remember also, that Trump views economic security as national security.  

Because of the United States’ increased energy production under the Trump administration (and OPEC’s willingness to maintain levels of production), energy prices have plummeted making the value of China’s (and, Russia’s) investments decline in countries where they have sought to purchase influence.

This is at the heart of the president’s strategy to curtail China’s anti-U.S. influence in our hemisphere.

As we move into week five of the shutdown, couple Maduro’s actions with China’s desire to bring whatever leverage they can muster in the ongoing trade negotiations with the U.S.  

As China’s political goals aligns with the goal of Democrats – get Trump out by any means necessary, it becomes a question of concern whether the Democrats obstructing the funding of a wall along our southern border are working in concert with Maduro and the Chinese.

Maybe the Chinese spy that Sen. Dianne Feinstein (D-CA) had on staff for 20 years can answer that.

President Trump forced Maduro’s hand, or at least invited today’s response severing ties, after Vice President Pence recorded a message to Venezuelans in which he referred to Maduro as “a dictator with no legitimate claim to power.”

Following Pence’s recording, the U.S. president officially recognized opposition leader Juan Guaido as Venezuela’s legitimate leader.

The bigger picture isn’t the temporary curtailment of relations with Venezuela.  It’s whether China can afford to carry the financial burden that Venezuela represents or abandoning the country and risk losing the fealty of other debt-ridden nations where the communist regime has sought to purchase influence.

US President Barack Obama (left) listens as Chinese President Xi Jinping speaks at a lunch banquet in the Great Hall of the People in Beijing on 12 November 2014.