“The country’s oil resources are the source of that cash.”
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True. So the regime change won’t lead to the deterioration of the relationship between Venezuela and oil buyer China.
[True. So the regime change won’t lead to the deterioration of the relationship between Venezuela and oil buyer China.]
It will. Because the oil is pledged in repayment of the loans. A new regime needs fresh cash. Shipments of oil in payment for old debt doesn’t get the regime that cash. In fact, the best source of new cash would be the US, which imports roughly as much oil as China, and pays more for it because of lower transportation costs. Bottom line is that the new regime stops debt payments in the form of oil shipments to China, and starts selling to the US, or any other buyer willing to pony up fresh cash. Which gets China all riled up because it is looking at $50b in loan principal that just went up in smoke.