China built a vast oil stake in Venezuela. Now it risks getting muscled out.

Subscribe to enjoy similar stories. When Venezuela booted out American oil companies in a nationalization campaign nearly two decades ago, China stepped in. Now, Beijing’s foothold there is in doubt as the U.S.

asserts new power over Venezuela’s oil patch. ​​Chinese government-owned oil companies hold claims to more than 4 billion barrels of Venezuelan oil, nearly five times as much as the only U.S. major that today produces in the South American nation, Chevron.

Beijing’s production deals, oil rigs and debt-backed supply arrangements have long bought it enormous sway in Venezuela—all of it now suddenly subject to the Trump administration’s preferences. The Chinese producers expanded their claims in the aftermath of a 2007 Venezuelan nationalization drive that pushed out Exxon Mobil and ConocoPhillips. China quickly emerged as a financier, equipment supplier and political partner in what Caracas called an “iron brotherhood" that until now insulated it from U.S.

pressure. Since orchestrating the ouster of Venezuelan President Nicolás Maduro this month, President Trump has welcomed China to continue buying Venezuelan oil, so long as Beijing pays market prices. Nearly all of the country’s paltry output in recent years had ultimately flowed there in largely black-market purchases, at a steep discount to global prices.

Trump has yet to articulate a position on the more strategic Chinese presence in the Venezuelan oil industry as a producer and claimant to reservoirs of crude in the ground, some of which are adjacent to blocks Caracas took from American producers. China’s embassy in Washington said its assets in Venezuela are governed by international law and benefit both nations. “China will take all necessary measures to