CHINESE President Xi Jingping and his Venezuelan counterpart Nicolas Maduro announced a range of initiatives to strengthen economic ties during a joint news conference in Caracas on Monday.

Beijing extended a £2.35 billion credit line that will support an economic development fund and will be repaid by oil shipments.

Venezuela’s socialist government has received roughly £30bn from China in recent years, paying for the loans with oil.

Mr Maduro said that the practice of exchanging loans for oil “doesn’t create a heavy debt burden like the old systems.”

The two men signed 38 new co-operative agreements, which included joint initiatives in industries including energy, mining and transport.

The China Development Bank opened a branch in Caracas at the weekend.

Mr Xi has been touring Latin America for more than a week and has also visited Brazil and Argentina.

Following his visit to Venezuela, he flew to his final destination in the region, Cuba.