Chinese-flagged oil tankers bound for Venezuela increase tensions in the Southern Caribbean.
What Happened? | A pair of Chinese oil tankers bound for Venezuela has raised the stakes of the current naval blockade on sanctioned oil tankers being imposed by the United States. China's Ambassador to the United Nations Sun Lei said on Monday, 'We call the United States to heed the just call of the international community, halt relevant actions, and avoid further escalation of tensions.' | The Trump Administration has yet to publicly comment on the Chinese ships in the southern Caribbean. One of the Chinese-flagged ships, the Thousand Sunny, which is not under U.S. sanctions, is due to arrive at a Venezuelan port in mid-January. | Why it Matters | While the U.S. naval blockade applies to sanctioned oil tankers and does not include unsanctioned ships, the potential for the situation off the coast of Venezuela to quickly escalate into a wider international crisis is increasing. Venezuela has begun escorting some of its oil tankers with armed gunboats, raising the chances of a direct confrontation with the U.S. Navy. China has loaned billions of dollars to Venezuela, which is being repaid with oil shipments, and that in turn makes China a stakeholder in the situation there. | | You have a "no strings attached" offer waiting. | | Prime members are eligible for a limited-time bonus offer instantly upon approval. | Imagine checking out today and having extra cash to cover your purchase immediately. | There is no annual fee and no minimum spend to unlock the bonus. | >> Unlock your $200+ credit | | China could alter the situation in the southern Caribbean by becoming a more vocal opponent of the U.S. naval blockade against Venezuela. Last week, Chinese state television broadcast a story about a recent Chinese military wargame in the city of Xuchang, Henan Province, involving the simulation of combat operations by the People's Liberation Army in the Western Hemisphere. Images from the wargame clearly showed simulated Chinese military action near Cuba, the Gulf of Mexico, and the Caribbean. | Presently, China does not have a significant naval force in the Caribbean, but China's involvement could force the Trump Administration to alter its approach to Venezuela even without direct military confrontation. The potential for Venezuela to become another point of contention and potentially a bargaining chip between China and the U.S. is growing. China has economic leverage that Venezuela does not, and Beijing could choose to make the situation in Venezuela part of its ongoing trade war with the United States. | For Venezuela, the comments by China's government could persuade President Maduro to remain in office, even though the U.S. is clearly engaged in an effort to oust him from power. The longer Mr. Maduro defies the U.S., the more costly and risky the operations to oust him from office are likely to become for the Trump Administration. | How it Affects You | A war between China and the U.S. over Venezuela is unlikely, but China's involvement is already a significant factor due to their economic leverage with their largest trading partner. China's stance could also encourage other countries to oppose U.S. policies in Venezuela, making those efforts costlier and less likely to succeed. | | More breaking news below… | Russian Foreign Minister accuses Ukraine of targeting a residence of President Putin with a drone attack in Novgorod. Read more here… |
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