How China Took Control of 90% of Ecuador’s oil supply

mining.com/Reuters reported China is serious about expanding its international portfolio: The Asian giant’s recent foreign purchases include a 20% stake in Brazil’s Libra oil field, a skyscraper near Wall Street, and the country’s Lenovo tried, but failed, to buy Canada’s Blackberry.

But these acquisitions pale in comparison to what records reviewed by Reuters are showing. According to a special report, China now controls 90% of Ecuador’s oil, an OPEC nation.

Through a series of financing deals with state-owned oil company PetroEcuador, China has coaxed the Latin American country into submission. Ecuador had little leverage: After a $3.2 billion default in 2008, money hasn’t exactly been flowing into the country.

China is expected to cover 61% of the Ecuadorian government’s $6.2 billion financing needs this year. As part of the deal, “China can claim as much as 90% of Ecuador’s oil shipments in coming years,” Reuters writes. Read Article