China denies report of island-for-debt deal with Venezuela

China denied on Thursday that Venezuela intended to pay its debt to China with an island, calling the stories "groundless" as each loan repayment so far has been "normal".

Chinese Foreign Ministry spokeswoman Hua Chunying was responding to reports in Hong Kong media that Venezuela's Blaquilla Island might be transferred to China to pay off its debts.

Hua said China and Venezuela have established mature and efficient cooperative mechanisms on financing. "Currently, each repayment of capital and interests on China's loan performs normally," she stressed.

"About whether the Venezuelan side might transfer its island to China," Hua said, "as far as I know, the reports are groundless."

Venezuela is important oil producer and exporter, and as well a crucial trade partner to China, Hua said, adding that the two sides have enjoyed fruitful practical cooperation over the past few years, to the benefits of their economic and social development.