• Chinese-flagged tankers Thousand Sunny and Xing Ye operating near Venezuelan waters despite U.S. seizures
• U.S. seized two China-bound tankers carrying 3.6 million barrels of Venezuelan crude this month
• Beijing condemned seizures as violation of international law, backs Venezuela in U.N. Security Council

WASHINGTON, D.C. (TDR) — Chinese oil tankers are pressing ahead with Venezuela-linked voyages despite a U.S. blockade and an escalating campaign of tanker seizures. Two Chinese-flagged VLCCs are operating near Venezuelan waters, with the Thousand Sunny due to arrive in mid-January and the Xing Ye waiting off French Guiana, according to Lloyd’s List.

The movements come as China condemned U.S. oil seizures and naval pressure on Venezuela. President Donald Trump is tightening maritime enforcement to choke off oil revenues to Caracas, while Venezuela’s President Nicolás Maduro accused Washington of illegally targeting sovereign exports.

Two Chinese VLCCs Challenge Blockade

Thousand Sunny was in the southern Atlantic Monday, having sailed around the Cape of Good Hope without cargo, and has not diverted or slowed since Trump announced an oil blockade on Venezuela in mid-December. The Chinese-flagged tanker of unknown origin is not sanctioned by the U.S. and has been transporting Venezuelan Merey crude to China for five years.

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The second unsanctioned Chinese-flagged VLCC, Xing Ye, is currently slow-steaming off French Guiana as it waits to load crude at Venezuela’s Jose Terminal. Like Thousand Sunny, its ownership remains undisclosed, and its post-Venezuela destination is unclear. The tanker last loaded crude in Venezuela in August.

China has extended tens of billions of dollars in loans to Venezuela over the years, repaid by Caracas largely through oil shipments, and backed Venezuela in an emergency meeting of the U.N. Security Council Tuesday.

U.S. Seizes China-Bound Tankers

Stepping up its blockade on Venezuelan oil, the U.S. seized the Panama-flagged Centuries and the VLCC Skipper while pursuing the Bella 1, which officials say is a sanctioned Venezuelan vessel flying a false flag under a judicial seizure order.

“The United States will continue to pursue the illicit movement of sanctioned oil that is used to fund narco terrorism in the region. We will find you, and we will stop you,” Homeland Security Secretary Kristi Noem wrote after the Centuries seizure.

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The first tanker seized, Skipper, was carrying about 1.85 million barrels of oil and was headed to deliver cargo to a Chinese buyer. The VLCC Centuries was also headed for China with about 1.8 million barrels on board. Trump said Monday the U.S. government will keep both vessels and their cargoes.

“We’re going to keep it. Maybe we’ll sell it. Maybe we’ll keep it. Maybe we’ll use it in the strategic reserves,” Trump told reporters of the oil.

China Accuses U.S. of Violating International Law

Chinese Foreign Ministry spokesman Lin Jian denounced the boardings at a press conference Monday, calling them a violation of other countries’ sovereignty and constituting “unilateralism and bullying.”

“By arbitrarily seizing other countries’ vessels, the U.S. has seriously violated international law. China stands against unilateral illicit sanctions that lack basis in international law or authorization of the UN Security Council,” Lin said.

Lin added that Venezuela “has the right to independently develop mutually beneficial cooperation with other countries,” and Beijing supports Caracas in “defending its own legitimate rights and interests.”

China is the top buyer for Venezuelan oil, purchasing about 76 percent of Venezuela’s output according to Kpler data. Venezuela has produced around 900,000 barrels of crude oil and condensate in 2025, accounting for roughly 1 percent of total global supply.

Operation Southern Spear Escalates

Trump announced via Truth Social on Dec. 16 that he was ordering “A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela.” The announcement represented a significant escalation in Operation Southern Spear, an ongoing military campaign that began in late August.

The U.S. has assembled what Trump characterized as “the largest Armada ever assembled in the History of South America,” centered on the nuclear-powered aircraft carrier USS Gerald R. Ford. The deployment includes more than 15,000 troops positioned in the Caribbean.

Since September, U.S. forces have conducted more than 29 strikes on vessels in the Caribbean and eastern Pacific, killing at least 107 people in attacks on boats allegedly involved in drug smuggling. Critics including Human Rights Watch have questioned whether the operations comply with U.S. and international law.

“The Trump administration claims the boats are carrying ‘narco-traffickers’ who belong to groups it has designated as terrorist organizations under U.S. law. But the U.S. government has neither identified the people killed in any of the cases nor demonstrated that those killed in the strikes were doing anything that could justify the use of lethal force,” Human Rights Watch said in December.

Trump Claims Strike on Venezuelan Dock

In a further escalation, Trump claimed Monday the U.S. struck a dock facility in Venezuela used to load drugs onto boats. The apparent Christmas Eve attack would mark the first known land strike by U.S. forces in Venezuela since the campaign began.

“There was a major explosion in the dock area where they load the boats up with drugs. So we hit all the boats, and now, we hit the area. It’s the implementation area. That’s where they implement. And that is no longer around,” Trump told reporters in Florida while meeting with Israeli Prime Minister Benjamin Netanyahu.

Trump declined to say whether the U.S. military or CIA carried out the strike. Venezuela has not publicly commented on the president’s remarks.

Economic Impact and Regional Tensions

Venezuelan oil exports have fallen sharply following the seizure campaign, with shipping data showing most crude cargoes stuck or avoiding Venezuelan ports. Tankers scheduled to load Venezuelan crude have been rerouted or turned back to avoid U.S. naval patrols, creating severe logistical disruptions.

Venezuela’s oil storage capacity is rapidly filling, raising the risk that state oil company PDVSA may soon have to curtail production if export bottlenecks persist. Markets have responded with short-term price volatility reflecting supply concerns.

Venezuelan gunboats have begun escorting vessels carrying oil and petroleum products, though coverage appears limited to territorial waters. Trump simultaneously designated the Venezuelan government as a Foreign Terrorist Organization under U.S. law, making it illegal for Americans to provide material support to the Maduro regime.

Russia’s U.N. representative Vassily Nebenzia told an emergency Security Council meeting that “the illegal US blockade of Venezuela’s coastline is a genuine act of aggression.”

Critical Test of U.S. Enforcement

As Thousand Sunny nears Venezuela’s Jose Terminal in coming weeks and Xing Ye waits nearby, U.S. enforcement or non-enforcement of the declared blockade will shape whether the standoff develops into a wider geopolitical confrontation with China.

The market cannot know in advance if any vessel filled with sanctioned oil is directly going to China, with spoofing and transshipment between tankers used to avoid detection. Both vessels seized over the weekend have prior history transporting crude oil to China, according to Kpler.

“What still is yet to play out would be a reaction from China should the Trump administration seize a vessel headed their way,” said Andrew Lipow, president of Lipow Oil Associates.

Will China’s decision to send tankers into Venezuelan waters despite U.S. naval blockade force a confrontation between Washington and Beijing over access to sanctioned oil?

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