wonder who is getting the better ROI, driving away foreign invesment and chasing after sovereign wealth funds, is that not backward economic

Venezuela May Replenish $6 Billion Development Fund With China

By Jose Orozco

Aug. 28 (Bloomberg) -- Venezuela and China may replenish a $6 billion joint development fund the two countries maintain, Venezuelan President Hugo Chavez said.

The South American leader said he plans to visit China in two weeks to discuss current and future economic agreements. He didn't provide further details.

``We created a $6 billion fund with China, all of which is being invested here right now,'' Chavez said at a ceremony with Argentine industrialists broadcast on state television. ``It's very likely that we will renew the fund for another $6 billion.''

Venezuela has created development funds with China, Iran and other emerging economies in a move to diversify investment sources and promote political alliances that challenge U.S. power in Latin America.

Chavez also proposed creating a joint $1 billion Venezuela- Argentina development fund. The fund would offer credit at low interest rates with long grace periods, Chavez said.