Trump faces China-linked claims over Venezuelan oil

The U.S. has asserted control over Venezuelan oil that China holds contractual claims to under past loans-for-oil deals; Beijing has publicly protested the U.S. actions.

U.S. officials say they are asserting control over Venezuelan oil that is tied up in contracts China struck with Caracas years ago. Chinese state firms and other creditors have claims stemming from loans-for-oil arrangements, and those ties complicate how oil and related revenues will be handled. The U.S. has seized two sanctioned oil tankers and announced it will manage sales and place proceeds in U.S.-controlled accounts intended to benefit Venezuelans. Beijing has protested the use of U.S. force and called for the release of Nicolás Maduro and his wife. Key details: - China is reported to hold large claims on Venezuelan oil from loans-for-oil deals, with some estimates putting outstanding debt at around $10 billion and research noting Chinese firms have rights covering billions of barrels. - U.S. authorities seized two sanctioned tankers and said they would start sales from Venezuelan crude storage, with proceeds deposited into U.S.-controlled accounts. - Chinese officials described the U.S. actions as deeply troubling and said economic cooperation between China and Venezuela is protected by law, calling for Maduro's release. - Analysts note that Chinese investments in Venezuela extend beyond oil to sectors such as telecommunications and ports, which are now at risk of disruption. - A planned U.S.-China diplomatic engagement in April is noted as a near-term context for how Washington and Beijing might manage the dispute. Summary: The situation creates overlapping diplomatic and legal questions about competing claims to Venezuelan oil and associated debts. How those claims will be resolved and in what order creditors will be paid is undetermined at this time, and upcoming diplomatic contacts between the U.S. and China are likely to influence next steps.