Venezuela Mess Prods China to Reassess Africa Lending Spree

The threat of Venezuela defaulting on Chinese debt is putting pressure on Beijing to reassess how easily it doles out money to commodity-dependent nations, especially those in Africa.

As low oil prices ravage Venezuela’s economy and embattled leader Nicolas Maduro seeks better terms on Chinese loans, China is paying greater attention to things like fiscal stability and political risk in overseas lending. Increasing such scrutiny could complicate President Xi Jinping’s pledge to spread $60 billion in aid across Africa over the next three years, much of it preferential loans and state-backed investments in countries heavily reliant on resource exports and prone to instability.