Venezuela, a country once rich in resources, is now in deep economic trouble.
Many people have the impression of this country as poor and backward, however, it is one of the countries with the richest oil reserves in the world. It has huge reserves of oil, iron, aluminum, and gold, as well as huge coal and natural gas resources.
In the 70s, Venezuela was one of the richest in South America, but today it faces limited shopping, water scarcity, and food shortages.
Venezuela and the United States have a long history, but since 1998, when Hugo Chávez became the leader, relations between the two countries have taken a sharp turn for the worse.
* The implementation of nationalization reforms, which required Venezuela's state-owned oil companies to take a percentage stake in domestic oil projects, caused the United States to lose its dominant position in the country's oil industry.
Although this decision is seen as defending national interests, it has also led the United States to impose a series of sanctions on Venezuela.
In the years that followed, Venezuela was politically volatile, and Maduro continued Chávez's policies after coming to power.
The unilateral sanctions imposed by the United States on Venezuela have led to a sharp drop in domestic incomes and a sharp drop in living standards. Shortages of medical supplies and deterioration of medical conditions have resulted in the loss of thousands of lives.
At the same time, Venezuela** is too dependent on the oil industry, resulting in the inability of other industries to develop benignly, and the fluctuation of international oil prices has also had a huge impact on it.
As the economic situation deteriorated, Venezuela** turned to international assistance.
China has been one of the lifesavers, providing nearly $50 billion in aid.
However, the use of this money did not lead to economic recovery, but continued to be used for "benefiting the people" policy, leading to a further widening of the fiscal deficit.
In this predicament, Venezuela is trying to alleviate the pressure through oil, borrowing, etc.
The easing of sanctions on Venezuela's oil industry by the United States in 2022 has led to a recovery in Venezuela's oil production and a gradual increase in foreign exchange earnings.
* Began to change its strategy and diversify its funds, including agriculture and the pharmaceutical industry, and achieved certain results.
The economic growth rate also rebounded significantly in 2022.
Although Venezuela still faces many difficulties, through the efforts of many parties, the country has gradually found a way out of its predicament.
The cooperation between China and Venezuela is also expected to achieve more results in the process of economic recovery.