China has emerged as a major indirect casualty of Washington’s latest action against Venezuela, with Beijing now facing serious political, military, and economic consequences in Latin America. As a country that clearly fits the US National Security Strategy’s definition of a “non-hemispheric competitor,” China has long been deeply embedded in Venezuela through its close ties with the government of President Nicolás Maduro.

With Maduro now expected to confront legal action in the United States, American officials have made clear that they intend to reassert influence in the Western Hemisphere. That posture puts China’s extensive investments and strategic footprint in Venezuela — and the wider region — at significant risk.

Beijing responded swiftly and forcefully at the diplomatic level. China’s foreign ministry condemned the US military action, calling it a breach of Venezuela’s sovereignty and a violation of international law and the UN Charter. Chinese officials warned that such moves undermine regional stability and threaten peace across Latin America. As in previous global crises, China leaned heavily on legal and multilateral language while portraying the US as acting unilaterally and outside accepted norms.

However, beneath the official statements lie two pressing concerns for Beijing: the poor showing of Chinese-supplied military equipment used by Venezuelan forces, and the uncertain future of China’s massive energy and financial exposure in the country.

Scrutiny Over Chinese Military Hardware

Venezuela’s armed forces had been equipped with a range of Chinese-made systems. These included VN4 armoured vehicles operated by the National Guard, VN-1 and VN-18 infantry fighting vehicles used by the Marines, and K-8 “Karakorum” light attack aircraft flown by the air force. One of the most significant assets was the JY-27 counter-stealth radar developed by China Electronics Technology Group Corporation, which Chinese officials had previously claimed was capable of detecting highly stealthy targets.

Despite this arsenal, Venezuelan defences failed to detect or prevent US strikes, reportedly involving advanced F-22 and F-35 stealth aircraft. The inability to respond effectively suggests that radar systems and ground assets were either disabled early, overwhelmed, or inadequately deployed.

Notably, Chinese public commentary has avoided direct discussion of the performance of its weapons. This contrasts sharply with earlier episodes, such as Pakistan’s air-defence operations against India, where Chinese military technology was openly praised by analysts and commentators. In this case, discussion within China has instead focused on how the US operation succeeded — highlighting early air superiority, electronic warfare, intelligence gathering, and the role of elite American forces.

The lack of debate over the equipment itself may point to discomfort in Beijing about how Chinese export-grade systems compare against the most advanced US military technology, and what that could mean for China’s arms sales worldwide.

China’s Energy Bet Faces Uncertainty

The economic stakes are even higher. China remains Venezuela’s largest oil customer, accounting for an estimated majority of the country’s crude exports in 2025. Since 2007, Chinese policy banks have extended roughly $50–60 billion in financing to Caracas, largely through oil-backed loan agreements.

Those long-term deals now appear increasingly fragile. With US influence expanding and Venezuelan oil assets effectively under American control, China risks losing access to resources that underpin decades of strategic investment. Unlike in other Belt and Road partner countries, China holds little physical collateral in Venezuela, making recovery of its funds uncertain.

Analysts warn that Beijing could face a massive write-off — potentially one of the largest losses associated with President Xi Jinping’s global infrastructure and investment strategy.

Just days before the US action, China’s special envoy for Latin American affairs had visited Venezuela to explore deeper economic cooperation and coordinate resistance to what Beijing calls American “unilateral pressure.” The timing underscores how seriously China viewed its position in the country.

A Strategic Message to Beijing

The US operation, coupled with new sanctions targeting oil traders linked to Venezuela, sends a clear signal: Washington is willing to use both economic and military tools to enforce its dominance in the Western Hemisphere.

For China, the episode is deeply unsettling. It forces a reassessment of Beijing’s ability to protect its overseas interests and project influence far from home. At the same time, it provides China with fresh material to rally developing nations by portraying the US as an unchecked global power.

How Beijing ultimately responds remains uncertain. What is clear, however, is that Chinese policymakers will closely study the events surrounding January 3 — not only to better understand American military and intelligence capabilities, but also to reevaluate China’s own vulnerabilities in an increasingly confrontational global landscape.