Analysts say leader will enhance cooperation in trade and energy

Radical reform or change is unlikely to happen during the next term of re-elected Venezuelan President Hugo Chavez, but he will continue to implement policies that benefit the poor and become closer to China and countries in Latin America, analysts said.

Official results on Sunday indicated that with 90 percent of the ballots counted, Chavez took 54.42 percent of the vote, beating opposition candidate Henrique Capriles by nearly 10 percent, according to Reuters.

The victory will give Chavez, 58, another six-year mandate to pursue his "21st-century socialism" project of greater nationalization and more rights for the poor.

"According to Chavez's previous management, he will maintain policies that benefit the poor and make appropriate adjustments," said Zhao Chongyang, an expert on Venezuela studies at the Chinese Academy of Social Sciences.

But there will not be radical reform or change during his presidency, Zhao predicted.

Tens of thousands of ecstatic supporters thronged the streets around the presidential palace in downtown Caracas, pumping fists in the air and shouting Chavez's name.

The new term will allow Chavez to consolidate his control over Venezuela's economy, possibly by extending a wave of nationalizations, and by continuing his support for left-wing allies in Latin America and around the world.

"Truthfully, this has been the perfect battle, a democratic battle," Chavez thundered from the balcony of the palace late on Sunday, holding up a replica of the sword belonging to Venezuelan independence hero Simon Bolivar, who lived from 1783-1830.

"Venezuela will continue along the path of democratic and Bolivarian socialism of the 21st century."

Since first winning the presidency in 1998, Chavez has been a highly polarizing figure. He is popular with the poor, but he is also blamed for rising crime, corruption and inflation.

Casting himself as an heir to Bolivar, Chavez has devoted large amounts of the country's oil revenues to anti-poverty programs.

"I'm celebrating with a big heart," Mary Reina, 62, a Chavez supporter who lives in the hillside slum, told Reuters. "Chavez is the hope of the people and of Latin America," she said.

"During his next presidency, Chavez will put more money into building safety nets and enhancing the living standards of his people," said Qi Fengtian, a specialist in Latin American studies at the Chinese Academy of Social Sciences.

On foreign policy, Chavez is a self-sufficient revolutionary, known for calling former US president George W. Bush "the devil".

Qi said Chavez's efforts to be independent will lead him to further improve Venezuela's cooperation with China and countries in Latin America.

Chavez's re-election "is good news for China and even for China's relationships with Caribbean and Latin American countries", said Qi.

"It will further boost the China-Venezuela relationship and deepen cooperation in energy and trade," said Zhao.

China has a great deal of investment in Venezuela, and Chavez's election victory will expand China-Venezuela cooperation in different fields, especially in oil, Zhao said.

Since China and Venezuela established diplomatic relations in 1974, the two countries have signed 460 bilateral agreements, 98 percent of which were finalized during Chavez's rule.

Despite the jubilant celebration by Chavez's supporters, all eyes will again be focused on his health.

Weakened after being diagnosed with cancer last year, Chavez declared himself fully recovered and "totally free" of the disease in July and intensified his campaign. But the possibility of a recurrence hangs over his political future.

Chavez has gone through three operations for two cancerous tumors during a year's treatment. He was left bald for a while due to operations and chemotherapy.

Any sign of a relapse in Chavez from now on would lead to a succession debate within the Socialist Party.

His new term begins on Jan 10.

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Reuters contributed to this story.