Venezuela has assured Beijing that its oil pricing will not be dictated by the U.S. and that Chinese investment in the South American country remains secure, according to state media.

Speaking at a press briefing Tuesday, Remigio Ceballos, Venezuelan ambassador to China, dismissed reports that Washington would influence the price China pays for Venezuelan crude, saying Caracas would not abide by U.S. arrangements.

The Wall Street Journal reported last month that U.S. President Donald Trump was considering exerting control over Venezuela’s state-run oil company Petróleos de Venezuela SA, or PDVSA, including lowering prices to $50 per barrel.

“Regarding oil pricing, Venezuela will not heed the arrangements of the United States or other countries. We have the right to make independent decisions, and oil prices will be determined based on international market prices,” Ceballos said.

The comments came about a month after the U.S. captured Venezuelan President Nicolás Maduro and his wife, Cilia Flores, in a surprise military operation, and moved to assert influence over its oil sector through sanctions and negotiated oil sales.

China, which has absorbed much of Venezuela’s crude exports at steep discounts due to U.S. sanctions, has condemned the U.S. military attack on Venezuela and called for the release of Maduro.

Ceballos described the capture of Maduro as a “warning to the entire world” but sought to play down the impact on Venezuela’s ties with China. “China and Venezuela are trusted partners,” he said, adding that the relationship was built on mutual trust and could not be swayed by any third country.

The ambassador also sought to assure that Chinese investment in Venezuela will be secure. “Chinese enterprises operating in Venezuela and investments from other nations have continued to progress as usual. Not only for the petroleum sector, but all areas of cooperation will not be affected.”

The seizure of Maduro has fueled concerns about the future of Chinese investment in Venezuela as Beijing has been among the few active foreign players in the South American country — a gap it filled after U.S. sanctions limited American involvement.

State-owned oil giant China National Petroleum Corporation has joint ventures with PDVSA, while privately held China Concord Resources Corp. announced in August plans to invest more than $1 billion in a Venezuelan oil project, targeting production of 60,000 barrels per day by the end of 2026, according to Reuters.

Venezuela holds the world’s largest proven oil reserves, but its crude output remained subdued after decades of mismanagement, underinvestment and U.S. sanctions.

The Trump administration has touted U.S.-led industry reform — aimed at boosting oil and gas production and attracting foreign investment — as positive for Venezuela and its people. Higher oil output and lower prices would also help lower energy costs for American consumers.

During a testimony on Capitol Hill, Secretary of State Marco Rubio said the U.S. government’s involvement in the sale of Venezuelan oil was a short-term plan aimed at stabilizing the country and keeping the government afloat.

Washington has returned all $500 million from the initial oil sale to the Venezuelan government, Reuters reported, citing a U.S. official.

The U.S. government has also reportedly moved to issue a general license that would allow companies to trade, transport and refine Venezuelan crude, as part of efforts to ease sanctions and revive the flagging energy industry.

Following the military operation on Jan. 3, the White House reportedly demanded that Venezuela cut economic ties with China, Russia, Iran and Cuba, according to ABC News.

But over the weekend, Trump appeared to soften his tone, saying that Chinese and Indian investment would be welcome. “China is welcome to come in and will make a great deal on oil,” he said on a flight to Mar-a-Lago on Air Force One on Saturday.

Chinese President Xi Jinping told his Uruguayan counterpart Yamandu Orsi Tuesday that Beijing would work with Uruguay in building an “equal and orderly multipolar world.” Orsi was the first South American leader to visit China since Maduro’s capture

In a meeting with Uruguayan counterpart Yamandu Orsi Tuesday — the first South American leader to visit China since Maduro’s capture — Chinese president Xi Jinping said the country will work with Uruguay in building an “equal and orderly multipolar world.”

Xi added that China has always valued its relations with Latin American and Caribbean countries and supports their sovereignty, security and development goals.

Source: CNBC