China and Chavez are getting chummy! China would provide $20 billion to

China and Chavez are getting chummy!

China would provide $20 billion to Venezuela for a “large volume and long term” financing plan in exchange for more petroleum, Venezuelan President Hugo Chavez has said.

China will contribute financing of $20 billion” to help with development in Venezuela under conditions that in no way have anything to do with the excessive interest rates of multilateral lending entities, such as the International Monetary Fund, Chavez said ahead of a meeting here Sunday with Chinese President Hu Jintao.

“All the petroleum that China may need to consolidate itself as a great power is here,” Chavez said, adding that the Asian country will become “the No. 1 great world power”.

Venezuela is already sending China about 500,000 barrels of oil per day. With the signing of the additional agreement, another 400,000 barrels per day
will be added, Chavez said.

Once a net oil exporter, China is now the world’s third biggest oil importer.

Source Financial Times