The US operation in Venezuela on 3 January 2026 marked a turning point in Chinese strategy towards Washington. Beijing interpreted the failure of Chinese-manufactured JY-27A radars to detect F-35s and American drones not as a technical deficit but as the result of offensive electronic warfare, triggering a series of economic and military countermeasures that outline an accelerated decoupling posture from the United States.
Energy Dependence and Strategic Vulnerability
China imports 1.38 million barrels of oil per day from Iran, equivalent to 13-14% of total seaborne imports, with over 80% of Iranian exports directed towards Chinese refineries. According to Kpler data updated to January 2026, Chinese independent refineries (teapots) in Shandong province constitute the main buyers of Iranian crude, sold at discounts of $8-10 per barrel below global benchmarks.
The loss of Venezuelan supplies following Maduro’s capture forced Beijing to replace 389,000 barrels/day with additional Iranian imports. Reuters confirms that teapot refineries will increase purchases from Tehran in coming months to compensate for the interruption of Venezuelan cargoes to Asia, with Venezuelan floating stocks sufficient to cover only 75 days of Chinese demand.
The Strait of Hormuz, through which 33-40% of Chinese energy requirements transit, represents the critical vulnerability. A conflict in the area would compromise supplies precisely as Washington intensifies sanctions against Iranian tankers and Chinese teapots.
Economic Retaliation and CIPS Acceleration
In response to the Venezuelan incident, the Politburo implemented decoupling measures:
Financial sector: blocking dollar transactions with structures linked to US defence, revoking American refinery contracts by Chinese oil companies.
Logistics: the Chinese commercial fleet, the world’s largest, began avoiding US ports, creating disruptions to American mass distribution.
CIPS system: the Cross-Border Interbank Payment System registered a 42.6% increase in transactions in 2024 (175.49 trillion yuan, equivalent to $24.47 trillion), with 8.2 million annual operations. By June 2025 participants reached 1,683 institutions across 180 countries. Average daily volume rose to 652.39 billion yuan ($90.95 billion).
In November 2025 six foreign banks (Standard Bank, African Export-Import Bank, First Abu Dhabi Bank, Eldik Bank, United Overseas Bank, Bangkok Bank) entered as direct participants, extending CIPS for the first time to offshore yuan centres in Africa, Middle East, Central Asia and Singapore. The system processed over 675 trillion yuan cumulatively by 31 May 2025.
Despite growth, CIPS still depends on SWIFT for over 80% of transactions as a messaging service. The yuan represents only 3% of global SWIFT payments versus 48% for the dollar and 24% for the euro (June 2025).
Military Preparation: Lessons from Venezuela
China is sending cargo aircraft and technicians to Iran to acquire data on American offensive systems. The objective is to study electronic countermeasures and develop next-generation radars in preparation for a potential clash in the Indo-Pacific.
The Venezuelan failure exposed limitations of Chinese air defence systems against high-intensity electronic warfare. Chinese military analysts quoted by South China Morning Post defined Venezuelan defences as “full of flaws and slow to react” facing US surveillance, cyber and electronic warfare, whilst noting that the US confronted a much weaker adversary.
Newsweek reports that over 60% of the Venezuelan radar fleet was out of service due to lack of spare parts and minimal technical support, according to Miami Strategic Intelligence Institute (June 2025). The Pentagon confirmed that inadequate maintenance contributed to the collapse of defensive systems.
China announced in June 2025 the development of the first 6G electronic warfare system capable of generating over 3,600 false radar targets in real time in the X-band used by the F-35’s AN/APG-85 radar, according to South China Morning Post. The system, based on a photonic core, integrates jamming and communications in the same signal processing channel.
Refusal of Subordination
Beijing refused tariff agreements that implied subordination to Washington’s rules, distinguishing itself from other countries that accepted subaltern positions. Chinese leadership believes American reindustrialisation proceeds too slowly to compete with Chinese growth rates and is preparing to face a protracted conflict, aware that Washington is willing to defend hegemony militarily.
Chinese strategy combines energy pragmatism (purchases of discounted crude from sanctioned countries to save billions), financial infrastructure acceleration (CIPS expansion), and military preparation based on empirical analysis of US offensive capabilities. There are no ideological proclamations but concrete countermeasures calibrated on energy survival and sovereignty preservation facing an American attempt to impose predominance by force.
Sources
Iran-China oil imports 1.38 million barrels/day, 80% of Iranian exports https://moderndiplomacy.eu/2026/01/13/chinas-dependence-on-iranian-oil-strategic-leverage-and-exposure/
China replaces Venezuelan supplies with Iranian oil January 2026 https://www.iranintl.com/en/202601076231
Shandong teapots increase Iranian purchases after Venezuelan disruption https://www.presstv.ir/Detail/2026/01/07/762059/China-oil-imports-Iran-Venezuela-tensions
China imports 389,000 barrels/day from Venezuela 2025, Kpler data https://en.mehrnews.com/news/240571/China-to-replace-Venezuelan-oil-with-Iranian-oil-report
CIPS 2024: 175.49 trillion yuan ($24.47 trillion), +42.6% year-on-year
https://en.wikipedia.org/wiki/Cross-Border_Interbank_Payment_System
CIPS 1,683 participants June 2025, 180 countries
https://www.fxcintel.com/research/analysis/cips-growth-may-2025
Six foreign banks join CIPS as direct participants November 2025 https://english.sse.com.cn/news/newsrelease/voice/c/c_20250619_10782401.shtml
CIPS 675 trillion yuan processed cumulatively by 31 May 2025
https://statrys.com/blog/what-is-cips-china
Yuan 3% of global SWIFT payments vs 48% dollar, June 2025 https://www.fxcintel.com/research/analysis/cips-growth-may-2025
Chinese JY-27A radar failure Venezuela, US electronic warfare January 2026 https://www.eurasiantimes.com/chinas-anti-stealth-jy-27-radar-flops-in-venezuela/
60% of Venezuelan radar fleet out of service due to lack of spare parts
https://www.newsweek.com/china-made-military-radars-may-have-failed-venezuela-during-us-raid-11308099
Chinese military analysts: Venezuelan defences “full of flaws, slow to react” https://www.scmp.com/news/china/military/article/3338912/venezuela-attack-seen-reminder-china-boost-air-defence-counter-intelligence
Chinese 6G electronic warfare system generates 3,600 false radar targets https://www.armyrecognition.com/news/aerospace-news/2025/analysis-china-develops-first-6g-electronic-warfare-system-to-disrupt-radar-of-us-f-35-fighter-jet
Iranian crude discount $8-10 per barrel vs global benchmarks https://moderndiplomacy.eu/2026/01/13/chinas-dependence-on-iranian-oil-strategic-leverage-and-exposure/