Historically, the People’s Republic of China (PRC) has provided development assistance to Latin American countries even though PRC has not achieved developed country status itself. In explaining this puzzle, the literature emphasises the prevalence of material and economic interests in the region. The present study seeks, by key informant interviews, to provide a deeper understanding of this dynamic, specifically by paying attention to how this practice has taken shape in the case of Venezuela. Beijing opens extensive lines of credit based on a holistic trial-and-error approach and case-by-case adaptation. Loans have shifted from being seen as a solution to local problems to becoming another source of national economic stagnation. The criticism directed towards Chinese lenders is that they lack clear standards and this holistic adaptation tends to perpetuate the bad practices of unstable governments.

I. Introduction
II. Great Chinese Strategy: Between Rationality and Relationality
III. The Case of Venezuela
    A. China Learns How to Become a Regional Player in America’s Backyard
    B. Adaptation Is Key
    C. Sino-Venezuelan Strategic Association
    D. Chinese Loans: From Love to Hate
    E. Chinese Risk Policy regarding the Granting Loans: Trial andError
IV. Conclusion

• Andres Borquez(Assistant Professor and Coordinator of the Asian Studies Program at the Institute of International Studies, University of Chile. M.A. (Paris I), Ph.D. (Fudan))
• Eduardo Carreño(Assistant Professor at the Institute of International Studies, University of Chile. M.A./Ph.D. (Autonomous U. of Madrid))