US ousts Maduro, undercuts China’s Latin America ambitions - what it means for India

The dramatic early morning raid by the US military on January 3 that captured Venezuelan President Nicolas Maduro and his wife has shaken global geopolitics. Washington’s move not only reasserts US’s dominance in Latin America but also delivers a sharp blow to China’s interests and prestige in the region.

Maduro was China’s closest ally in the region, an anti-US leader sitting on vast oil reserves. Venezuela has China’s highest diplomatic honor and a status, an “all-weather” partnership, a status no other Latin American nation enjoys.

For years, China expanded its footprint in Latin America, offering loans for roads, ports and railways, pushing nations to drop support for Taiwan, buying up commodities like soybeans and oil, and tapping into copper and other metals.

More from Business

Trump pushes back, but US oil major ExxonMobil keeps Venezuela option open India pulls the brakes on 10-minute delivery by quick commerce firms to protect gig workers

China’s reach in the region spans from satellite tracking stations in Argentina to a port in Peru, and extends to economic lifelines for Venezuela, which has been a thorn for the US.

Trump’s move against Maduro was intended in part to counter China’s ambitions, Reuters reported on Monday.

The development in Caracas is forcing China into a high-stakes recalculation of its ambitions in a region that looks like the US’s backyard again, the Wall Street Journal reported on Tuesday, citing people close to internal discussions in the Chinese leadership.

Is China losing its grip?

On Friday in a meeting with oil executives, Trump made explicit remarks expressing discomfort with China and Russia as a “next-door neighbor”.

“I told China and I told Russia, ‘We get along with you very well, we like you very much, we don’t want you there, you’re not gonna be there,’" Trump said.

Quick Reads

View All

Saudi Arabia shifts $12 billion gaming stakes to Savvy, reports

Precious metals rally: Gold near record, silver breaks $90 on Fed rate cut bets

In a statement to Reuters, the Chinese embassy in Washington said it rejected what it called the United States’ “unilateral, illegal, and bullying acts.”

“China and Latin American and Caribbean countries maintain friendly exchanges and cooperation. No matter how the situation may evolve, we will continue to be a friend and partner,” said Liu Pengyu, the embassy’s spokesperson.

The US has also stepped up efforts to block Chinese firms from managing ports near the Panama Canal, the vital waterway connecting the Atlantic and Pacific.

A State Department official told Reuters the US “remains concerned” about Chinese influence near the canal, but appreciates Panama’s actions to curb this.

What does it mean for India?

After the United States’ Venezuela operation India’s Ministry of External Affairs (MEA) has issued a statement expressing “deep concern”.

“Recent developments in Venezuela are a matter of deep concern,” the ministry said.

The US-led transition is unlikely to disrupt India’s energy basket in the short term.

India’s direct exposure to Venezuela is minimal. Crude imports from the country have dwindled since US sanctions, and Indian oil firms like ONGC Videsh and Oil India hold only minority stakes in Venezuelan projects.

Restrained Chinese ambition in Latin America creates space for India to expand trade and technology ties in the region. While India lacks China’s financial muscle, sectors like pharmaceuticals, IT services, and renewable energy offer entry points for deeper engagement.

India can strengthen its Global South leadership by championing inclusive development within BRICS and other forums, positioning itself as a bridge across regions and a strong advocate for equitable global governance.