Venezuela, an important partner of China in South America, is experiencing one of its worst crises in 200 years, and this creates high risk for Chinese investments in the South American country.

Since 2011, ANBOUND Consulting has repeatedly warned about the political and economic risks of Venezuela, yet China has not conducted timely hedging against the risks in Venezuela.

Now a number of China's major partners in South America stand little chance to realize economic and political stability within short period of time, China should shrink its international cooperation front and concentrate its resources on the Belt & Road Initiative, especially in promoting the strategic move and the development of the New Maritime Silk Road.