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Unformatted text preview: hat evolved into criminal organizations—are now operating extensive money laundering services for drug trafficking organizations via Chinese banks.¶ China also has shown a distinct willingness to bail out financially strapped authoritarian governments if the price is right. For example, China lent Venezuela $20 billion, in the form of a joint venture with a company to pump crude oil that China then locked up for a decade at an average price of about $18 a barrel. The money came as Chávez was facing a financial crisis, rolling blackouts, and a severe liquidity shortage across the economy.12 Since then, China has extended several other significant loans to Venezuela, Ecuador, and Bolivia.¶ The dynamics of the relationship between China and the Bolivarian bloc and its nonstate proxies will be one of the key determinants of the future of Latin America and the survival of the Bolivarian project. Without significant material support from China, the economic model of the Bolivarian alliance...
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- Summer '12