Venezuela tells China oil prices won't be set by the U.S., seeks to reassure investment after Maduro capture

BEIJING – In a direct challenge to Washington's growing influence, Venezuela has publicly assured China that its vast oil reserves will not be subject to U.S. price controls and that Chinese investments remain secure. The critical message was delivered just weeks after the dramatic U.S. capture of President Nicolás Maduro, an event that has thrown the future of the nation's energy sector into turmoil.

Speaking at a press briefing in Beijing on Tuesday, Venezuelan ambassador Remigio Ceballos sought to calm nerves in the country's most important financial and political backer. He dismissed reports that the Trump administration would dictate the price China pays for Venezuelan crude, stating unequivocally that Caracas would not bow to U.S. pressure.

The move highlights the high-stakes geopolitical tug-of-war over Venezuela, which holds the world's largest proven oil reserves. As the U.S. moves to assert control following its military intervention, Venezuela is fighting to maintain its economic sovereignty and retain the loyalty of its key partner, China.

A Message for Beijing

Ambassador Ceballos's comments, carried by state media, were a clear attempt to counter U.S. efforts to reshape Venezuela's oil industry. His reassurances to Beijing were pointed and specific.

• On Oil Pricing: "Venezuela will not heed the arrangements of the United States or other countries," Ceballos stated. "We have the right to make independent decisions, and oil prices will be determined based on international market prices." This directly refutes a Wall Street Journal report that President Trump was considering forcing prices for Venezuelan crude down to $50 per barrel.

• On Investment Security: "Chinese enterprises operating in Venezuela and investments from other nations have continued to progress as usual," the ambassador said. "Not only for the petroleum sector, but all areas of cooperation will not be affected."

• On Bilateral Ties: Ceballos described the China-Venezuela relationship as one of "trusted partners," built on mutual trust that "could not be swayed by any third country." He acknowledged Maduro's capture was a "warning to the entire world" but insisted it would not damage core alliances.

The U.S. Factor: Intervention and Influence

The ambassador's press conference comes just over a month after a surprise U.S. military operation on January 3 resulted in the capture of President Nicolás Maduro and his wife, Cilia Flores. Since then, Washington has moved aggressively to restructure the country's state-run oil company, Petróleos de Venezuela SA (PDVSA), through a combination of sanctions and negotiated sales.

The Trump administration has framed its intervention as a necessary step to stabilize the country and reform an industry crippled by decades of mismanagement and corruption.

• Stated U.S. Goal: During a recent testimony on Capitol Hill, Secretary of State Marco Rubio described the U.S. government's direct involvement in Venezuelan oil sales as a "short-term plan aimed at stabilizing the country and keeping the government afloat."

• Initial Oil Sales: Washington has already facilitated an initial sale of Venezuelan oil, with all $500 million in proceeds returned to the Venezuelan government, a U.S. official told Reuters.

• Easing Sanctions?: The U.S. is also reportedly preparing to issue a general license that would permit companies to trade, transport, and refine Venezuelan crude, a significant step toward reviving the flagging energy sector and reintegrating it into global markets.

China's High-Stakes Bet

For Beijing, the stakes in Venezuela are immense. China has been among the few active foreign players in the South American nation, absorbing much of its crude exports at steep discounts as U.S. sanctions squeezed other buyers out of the market. Chinese state media has condemned the U.S. military attack and called for Maduro's release.

The instability has fueled deep concerns about the future of billions of dollars in Chinese investments.

• Key Players: State-owned oil giant China National Petroleum Corporation (CNPC) has significant joint ventures with PDVSA. More recently, privately held China Concord Resources Corp. announced plans in August to invest over $1 billion in a Venezuelan oil project, targeting 60,000 barrels per day by late 2026, according to Reuters.

Following the military operation, the White House reportedly demanded that Venezuela sever economic ties with China, Russia, Iran, and Cuba, according to ABC News. However, President Trump appeared to soften that stance over the weekend, telling reporters on Air Force One that investment would be welcome. "China is welcome to come in and will make a great deal on oil," he said Saturday.

The Broader Geopolitical Game

The drama is playing out against a backdrop of wider U.S.-China competition. In a meeting on Tuesday with Uruguayan President Yamandu Orsi—the first South American leader to visit Beijing since Maduro's capture—Chinese President Xi Jinping sent a clear signal.

Xi stated that Beijing would work with Uruguay to build an "equal and orderly multipolar world," a phrase widely seen as a diplomatic counter to U.S. global dominance. He added that China supports the sovereignty, security, and development goals of all Latin American and Caribbean countries.

What to Watch Next

Venezuela is now caught between its primary creditor and a superpower determined to remake its economy and foreign policy.

The path forward is fraught with uncertainty. Caracas is attempting to project an image of business-as-usual, but its ability to set its own oil prices and guarantee foreign investments ultimately depends on who controls the flow of its crude.

Investors and global energy markets will be watching closely to see if Washington follows through on issuing a general license for oil trading and whether Beijing’s state-owned and private firms proceed with their planned investments. The outcome will not only determine the future of Venezuela's economy but also serve as a barometer for U.S. influence in a region China has spent decades cultivating.