Study Of "Chinese-Venezuelan Joint Fund"

The "Chinese-Venezuelan Joint Fund" is based on the mutual interest between China as the world’s second largest economy, and Venezuela as holding the world’s reserves of crude of oil. In2001, the Strategic Alliance of Joint Development was founded and supported by the China-Venezuela High-Level Mixes Commission. It is considered a mechanism responsible for monitoring their corporation projects. The financing of the China-Venezuelan bilateral cooperation is guaranteed by the creation of the "Chinese-Venezuela Joint Fund", which was launched by both countries in2007. Both countries recently expanded their economic relations in order to widen the scope of cooperation concerning the areas of energy, mining, telecommunications, technology, housing, agriculture, infrastructure, and defense. Thus, China uses loans to exchanges development projects in return for Venezuelan oil exports; China has become a major investor of development projects in Venezuela.This research is focus on the Chinese-Venezuela Joint Fund’s contribution on the Venezuela’s economic growth and social development. This paper attempts to demonstrate the natural resource of Venezuela is the key piece of the "Chinese-Venezuelan Joint Fund", and Venezuela’s economic growth and social development is dependence on the revenue from petroleum export.Therefore, I give a brief overview of the economic relationship between China and Venezuela; after introduced the function of the "Chinese-Venezuelan Joint Fund", I attempted the impact into Venezuela’s economic growth and social development. As the result of this paper, among the goods exported by Venezuela, oil plays a dominant role and is also the primary good of trade between China and Venezuela, that "Chinese-Venezuelan Joint Fund" in remains important to Venezuela’s economic growth and social development.