China the winner in Venezuela deals - economist

China stands to gain more than crisis-riven Venezuela from a raft of new bilateral accords between the countries, according to Caracas-based consultancy firm Econométrica.

Venezuelan state media reported last week that 28 agreements were signed aimed at boosting cooperation in the oil, mining, security, technology, financial and health sectors.

Among them was a commitment by Venezuelan state-owned company PDVSA to export 1Mb/d of crude oil to the Asian country through its joint ventures with China's CNPC and CNODC. The plan foresees joint investments of US$5bn.

According to Econométrica director and economist Henkel García, the deals mainly serve to facilitate Venezuela's efforts to pay off its debt to China.

"That leaves practically no space for the government to obtain [anything in return]," García told independent Venezuelan newspaper Efecto Cocuyo.

"That makes it an investment plan that is under the discretion of the Chinese with the goal of raising the production of these joint ventures. [China] knows that increasing that production improves the chance that Venezuela will finally honor its [debt] commitments."

Garcia added: "The benefit to Venezuela is that it will allow the country to pay off its Chinese debt. It could represent income for the nation, but that is still a long way off. In my opinion, it benefits the Chinese a lot more than Venezuela."

Despite holding the world's largest proven hydrocarbon reserves, Venezuelan oil production has this year fallen to its lowest level since 1950.

Analysts blame the decline on the failed economic policies of President Nicolás Maduro, who began a second six-year term in May following elections that were widely denounced as rigged.