US adopts aggressive tactics in Latin America amid growing Chinese economic presence
The United States has intensified military and economic pressure in Latin America, highlighted by a raid in Caracas that captured President Nicolás Maduro and secured a large share of Venezuelan oil production.
China's economic ties with Latin America hit a historic high in 2024, with trade totaling US$518.4 billion and significant investments in clean energy and manufacturing, such as electric-vehicle production in Brazil and a dominant market share in Ecuador. Meanwhile, the United States, guided by Donald Trump, has shifted to overt military and economic coercion, exemplified by the January raid on Caracas that captured Nicolás Maduro, killed roughly 80 people and eliminated 32 Cuban security staff.
Following the operation, the US secured a long-term agreement granting it 55 percent of oil output from 17 Venezuelan fields for 100 years, effectively controlling about 65 billion barrels. Acting President Delcy Rodríguez signed legislation privatizing Venezuela's energy sector under apparent US pressure. The Pentagon is also expected to acquire a stake in the parent company of North American Blue Energy Partners, a private producer selected for the oil deal.
Why it matters
The US actions reshape power dynamics and resource control in a region where China’s economic influence is expanding.
How this story developed
- Aug 28 U.S. Negotiates Long-Term Lease of Venezuelan Oil Fields to Cut Import Costs
- Aug 28 The White House has referred inquiries about the proposed deal to the Energy Department.
- Aug 29 Trump announced a partnership granting the United States a 55% effective output share in Venezuelan oil fields.
- Aug 30 The first publicly shared photographs of Nicolas Maduro since his January abduction were uploaded to his X account. The pictures show the former president detained by U.S. officials as he prepares for a trial on narco-terrorism and drug-trafficking accusations. The post was framed as a tribute to his grandchildren and supporters.
- Aug 31 Acting President Delcy Rodríguez announced a 25‑year bilateral energy project granting the United States majority control of more than 65 billion barrels of Venezuelan reserves.
- Aug 31 Trump said the deal will allow the United States to top up its Strategic Petroleum Reserve.
- Aug 31 The partnership was described as a 25‑year joint venture targeting 1.5 million barrels per day and projected to generate about $209 billion for Venezuela, with the United States holding a 55 percent interest and a 35 percent passive stake in the private partner.
- Sep 1 Pentagon’s Office of Strategic Capital joins the Venezuelan oil venture.
- Sep 2 U.S. Energy Secretary Chris Wright scheduled a visit to Venezuela to discuss the oil partnership.
- Sep 2 The administration revealed a $100 billion proposal that includes a disputed 35 % Pentagon equity stake and a 100‑year lease for the private partner.
- Sep 2 Nicolás Maduro and his wife Cilia Flores asked a Manhattan judge to throw out a drug-trafficking indictment, arguing they are immune as Venezuela’s head of state and first lady.
- Sep 3 Oral arguments on the dismissal motion are set for Nov. 17.
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