China Denies Buying Caribbean Island

Dec 04, 2014 01:50 PM EST

The Chinese government has denied reports that it will acquire a Caribbean island located less than 400 miles from Puerto Rico in exchange for $50 billion in Venezuelan debt.

The Chinese government has denied reports that it will acquire a Caribbean island from Venezeula in exchange for $50 billion in debt.

China's foreign ministry on Thursday shot down suggestions that Venezuela will transfer Blanquilla Island in the Caribbean Sea to China to clear its $50 billion debt. It had also been reported that Venezuela might apply for another $10 billion loan during Venezuelan Finance Minister Rodolfo Marco Torres' current trip to China.

Like Us on Facebook

"As far as I know, the report on Venezuela's transfer of an island to China to pay for Chinese loans is totally groundless and such thing is non-existent," said Foreign Ministry spokesperson Hua Chunying at a press conference Thursday.

"With regard to financing, the two sides have set up a mature and effective cooperation mechanism," she added. "All Chinese loans and their interests are being repaid properly."

This would certainly come as good news to the U.S., which probably wouldn't be too thrilled about China owning an island less than 400 miles away from the U.S. territory of Puerto Rico.

Torres started his visit to China on December 2., and exchanged views on practical cooperation between the two countries with Chinese officials from relevant authorities and financial institutions.

The two countries commemorated their 40th anniversary of diplomatic relations this year. In July, President Xi Jinping paid a state visit to Venezuela, and met with President Nicolas Maduro and elevated bilateral relations to a "comprehensive strategic partnership," said the Ministry.