“Venezuela is experiencing a very aggressive deindustrialization process. China produces in large quantities and at low costs, while production in Venezuela is very expensive,” said the economist.
Decency | The economist believes that President Nicolás Maduro’s visit to China aims to reactivate bilateral relations
As part of President Nicolás Maduro’s visit to China in search of “taking advantage of China’s growth experiences to apply them in Venezuela,” Asdrúbal Oliveros, economist and partner director of Ecoanalítico, recalled that the economic literature reflects that one is approaching the 100th -percent result cannot be reproduced. Models from one country to another.
He explained to Unión Radio that in these broadcasts the weight of peculiarities, institutions and history is always great; and that Chinese development includes extensive industrialization that makes it the factory of the world and that Venezuela, on the contrary, is far from it.
“Venezuela is experiencing a very aggressive deindustrialization process. China produces in large quantities and at low costs, while production in Venezuela is very expensive,” he added.
According to the economist, it seems that this visit seeks to seek resources and reactivate the relationship that has been maintained at the political level but which has experienced ups and downs at the economic level. He assured that they seek to revive these relations, especially since the Venezuelan government will seek to remain in power and be re-elected in the coming months.
Regarding the lack of intensification of relations with the USA, he emphasized that one could assume that they prefer to do business with China because they feel politically more comfortable.
“It would be excellent to sell oil to the United States because they have been our historical partners, we have interests with Citgo and our oil is well received because it has the appropriate machinery,” he added in this context.
He pointed out that the possibility of selling oil to the United States would be positive because it would be sold without discounts and would reduce debt to Chevron, the main supplier in the foreign exchange market, which would help prevent it a devaluation is worse.
The managing partner of Ecoanalítico pointed out that the possible reactivation of the oil sector would also have a big impact in areas that rely on oil, such as Zulia and Anzoátegui: “It is also very important for Venezuela to allow the direct sale of crude oil to China reactivate.” .”
He also explained that we did not expect a decline like the first eight months of the year in Venezuela, but hoped that there would be some reactivation in the last few months.