BEIJING, Jan. 7 (Xinhua) -- China said on Wednesday that financing cooperation with Venezuela is going smoothly, following reports that Venezuela is seeking more loans from China to overcome economic recession.

"China understands that falling oil prices have had an impact on Venezuela's economy," Foreign Ministry spokesman Hong Lei said at a daily briefing.

"Financing cooperation has been a powerful backup for large project cooperation between the two countries. Relevant financing cooperation is going smoothly," Hong said, adding that China is willing to work with Venezuela to advance practical cooperation to benefit the people.

Venezuelan president Nicolas Maduro is in Beijing for the ministerial meeting of the Forum of China and the Community of Latin American and Caribbean States (CELAC).

Meeting with Maduro on Wednesday, Chinese President Xi Jinping said he hopes Venezuela will make good use of bilateral financing mechanisms and channel more funds to the areas of energy, mining, agriculture and industry.

Venezuela is an OPEC member and the world's fifth-largest exporter of oil. The country depends on oil for over 90 percent of its export income. Oil export prices per barrel in Venezuela have plummeted from 95 dollars in September to the current 48 dollars.