The administration of US President Donald Trump has significantly ramped up its campaign against Venezuela's crucial oil industry. In a major development reported by Bloomberg, Washington has imposed sanctions on several companies based in mainland China and Hong Kong, alongside a number of oil tankers. These entities are accused of assisting Caracas in bypassing long-standing American restrictions.
A Sharp Warning to Beijing
This latest action represents a pointed warning to China as Washington escalates its confrontation with the government of Venezuelan President Nicolás Maduro. On Wednesday, the US Treasury Department announced that its Office of Foreign Assets Control (OFAC) had added four firms with suspected connections to Venezuela's oil trade to its sanctions list.
The sanctioned companies are Zhejiang-based Corniola Ltd., and Hong Kong-based Aries Global Investment Ltd., Krape Myrtle Co and Winky International Ltd. Additionally, four vessels linked to these firms—Della, Nord Star, Rosalind and Valiant—were also targeted.
While the US has previously sanctioned dozens of vessels and intermediaries involved in Venezuelan oil exports, the direct inclusion of Chinese-linked companies marks a relatively unusual step. Analysts indicate this underscores Washington's concern over China's position as Venezuela's largest oil customer. Crude exports are estimated to generate about 95 per cent of the South American nation's revenue.
Mounting Pressure and Military Escalation
The Treasury Department stated that these vessels, part of a shadow fleet serving Venezuela, continue to provide financial resources that support Maduro's regime, which it labels illegitimate and linked to narco-terrorism. The department accused Maduro's government of increasingly depending on a global shadow fleet to facilitate sanctionable activities and generate revenue.
According to ship-tracking data, among the four cited vessels, only the Rosalind has recently operated near Venezuela, typically on short coastal journeys. US officials noted that other ships might have travelled without broadcasting location data, a common tactic to hide sanctioned activities.
These financial sanctions are part of a broader Trump administration strategy to cut off revenue streams to Maduro's government, which Washington accuses of drug trafficking involvement. Just a day earlier, the Treasury also sanctioned 10 individuals and companies in Iran and Venezuela over alleged weapons trading.
US military activity has intensified in parallel with these financial measures. In recent weeks, American forces have intercepted two vessels and chased a third away from Venezuelan waters. The US Southern Command reported that strikes on December 30 sank three boats, killed three people, and led to others jumping into the sea before follow-up strikes destroyed the vessels. A separate strike on two other boats reportedly killed five people.
Earlier this week, President Trump confirmed a US strike inside Venezuela, targeting loading docks allegedly used by narco-trafficking boats—a significant escalation. CNN later reported, citing unnamed sources, that the CIA conducted a drone strike on a coastal dock linked to the Tren de Aragua gang.
China's Response and the Strategic Signal
China has pushed back strongly against the US measures, condemning Washington's quarantine of Venezuelan ports as "unilateral bullying" and arguing that ship seizures violate international law. Despite official pauses after 2019 US sanctions, Chinese refiners, especially private "teapot" refineries, have remained key buyers of Venezuelan crude through indirect channels.
While China formally resumed Venezuelan oil imports in February 2024, traders and data providers say purchases never fully stopped. Shipments were often relabelled as bitumen mix to circumvent sanctions.
Bloomberg's analysis suggests that targeting China-linked firms may be less about disrupting individual shipments and more about sending a strategic signal to Beijing. The aim is to urge China to limit its involvement in Venezuela's energy trade. With tensions rising over both economic sanctions and military actions, Washington appears prepared to widen its pressure campaign beyond Caracas to those perceived as enabling the regime.
As the standoff deepens, these sanctions highlight how Venezuela's oil industry has become a focal point not only for US policy in Latin America but also for its increasingly strained relationship with China.
