...testing out Brand China just as the U.S. unveils the new $100 in a friendly (read: neo-communist) jurisdiction. Link.
BEIJING – The Chinese government confirmed Tuesday the granting of two loans worth more than $20 billion and the signing of oil and energy agreements with the government of Venezuelan President Hugo Chavez.
“We expect China and Venezuela to carry out combined efforts to implement these accords and in that way take bilateral relations to a new level,” Foreign Ministry spokesperson Jiang Yu said in Beijing.
Last Saturday a delegation of Chinese senior officials and business executives signed seven bilateral cooperation accords with Venezuela, Jiang said, including “an outline agreement by means of which the China Development Bank will lend $10 billion and another 70 billion yuan ($10.2 billion) in financing” to the oil-rich Andean nation.
The Chinese press said that the accords were signed in the presence of Chavez and a delegation led by energy czar Zhang Guobao, since Chinese President Hu Jintao canceled his trip to Caracas because of the Qinghai earthquake.
The yuan fund will be a pilot test for internationalizing the yuan, since given Venezuela’s oil potential the agreement could raise the status of the Chinese currency in the oil sector.