Venezuela and China have signed a pact that aims to improve and modernize special economic zones.
The signing happened during President Nicolás Maduro’s visit to China.
The agreement is between Venezuela’s Zone Authority and China’s Zone Research Center at Shenzhen University.
The deal states that the zones will promote self-reliant economic growth. This growth will include secure legal conditions, social fairness, and green practices.
Maduro came to China to strengthen ties between the two countries. He met with Huang Kunming, head of China’s Communist Party.
Maduro said these zones would diversify Venezuela’s economy. They will also link the country to the latest technologies.
Earlier, Maduro had approved four new zones in Venezuela. These are in different strategic areas.
As the Venezuelan Ministry reported, the aim is to develop an economic model that doesn’t rely on oil.
Background
The signed pact is a significant move for both countries. It shows Venezuela and China are keen on deepening their relations.
Special economic zones can play a big role in boosting trade and investment. They often offer tax breaks and other incentives to businesses.
The agreement comes at a time when Venezuela seeks to diversify its economy. It has long been dependent on oil exports.
This over-reliance on oil has made its economy vulnerable. Thus, new economic zones could help create other revenue streams.
China sees this as an opportunity too. It has expertise in developing such zones.
Shenzhen itself is a success story, growing from a small town to a tech hub. Therefore, China’s role in this deal is crucial.
This development could have broader impacts. It might attract other countries to invest in Venezuela.
It can also pave the way for new joint projects between Venezuela and China. Both nations stand to gain from strengthened cooperation and economic diversification.