America supporting a different government than China, in such a strategically significant country like Venezuela is most likely to devolve into a proxy war between the two countries.
Originally from https://71republic.com/2019/01/24/war-venezuela-china-involved/
It’s just been confirmed that the Venezuelan police force, under the control of Nicolás Maduro, has started shooting at protesters. This is all happening in the midst of POTUS Donald Trump recognising Venezuelan opposition leader Juan Guaido as the country’s legitimate president, causing not only Maduro’s, but the People’s Republic of China’s high stake interests to fall into peril.
Bolsonaro’s Brazil, Paraguay, Canada and Colombia have all, within 24 hours recognised the Guaido as the president of Venezuela. This lack of balance of recognition in contrast to power may be the cause of the escalation of violence in the streets of Caracas.
As Bloomberg says, in an article from September 2018 (https://www.bloomberg.com/news/articles/2018-09-13/china-to-give-venezuela-5-billion-loan-as-maduro-visits-beijing), the Chinese government has agreed to extend Nicolás Maduro’s credit line by 5 bln USD. This given sword, as usual in the Eastern dragon’s case, has two edges- Venezuela is obliged to sell China it’s most valuable resource, ie oil, at a very cheap price. Of course, a manufacturing economy, China relies on oil for it’s production of goods, without which their fast growing economy would fall into ruins.
If the American government decides to intervene in favour of it’s preferred side of Venezuela’s political scene, a proxy war between China, which majorly invested in Maduro’s army, and the USA is extremely likely to occur. China will be anything but reluctant to give up it’s neo-colonial acquisition.
Even though this conflict is unlikely to spread outside of the North of the South American continent, the ensuing famine and mass migration is sure to destabilise the whole region, as well as possibly hit the USA.