China Boosts Support for Latin Leftists - China Pledged Billions of Dollars of Financing to Venezuela and Ecuador, Two South American Energy Exporters Battered by Falling Oil Prices

From The Wall Street Journal:

China pledged billions of dollars of financing to Venezuela and Ecuador, two South American energy exporters battered by falling oil prices, as Beijing moved to secure resources and allies in the region.

Beijing has become the biggest foreign financier of both Venezuela and Ecuador, two oil-rich, leftist allies eager to help counter U.S. sway in the region.

Both Latin countries, highly dependent on oil exports to pay for heavy public spending, were in dire need of a helping hand as crude prices tumble to less than half of their level from several months ago. A barrel of oil sold for about $50 on Wednesday.

Venezuela needs oil to average around $117.50 a barrel to balance its 2015 budget, according to Deutsche Bank estimates.

Mr. Maduro, who has seen his approval rating swoon along with oil prices, offered few details on the new accords with China, which he said involved projects in the energy, industrial and housing sectors.

Wednesday’s agreement underscored China’s continuing support for Mr. Maduro despite his political woes, said Risa Grais Targow, senior Latin America analysts for Eurasia Group.

“This is because the Chinese are heavily exposed to Venezuela and are likely concerned about the prospect of regime change,” she said in a client note.