China resists US call to halt oil imports from Russia, Iran
WASHINGTON
FILE - A Russian and Chinese national flag flutter near Tiananmen Gate for the visiting Russia's President Vladimir Putin, in Beijing, May 16, 2024. (AP Photo/Andy Wong, File)
U.S. and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the U.S. demand that China stop purchasing oil from Iran and Russia.
“China will always ensure its energy supply in ways that serve our national interests,” China's Foreign Ministry posted on X on July 30 following two days of trade negotiations in Stockholm, responding to the U.S. threat of a 100 percent tariff.
The response is notable at a time when both Beijing and Washington are signaling optimism and goodwill about reaching a deal to keep commercial ties between the world's two largest economies stable.
It underscores China's confidence in playing hardball when dealing with the Trump administration, especially when trade is linked to its energy and foreign policies.
In seeking to restrict oil sales by Russia and Iran, a major source of revenue for both countries, the U.S. wants to reduce the funding available for their militaries, as Moscow pursues its war against Ukraine and Tehran funds militant groups across the Middle East.
When Trump unveiled a sweeping plan for tariffs on dozens of countries in April, China was the only country that retaliated. It refused to give in to U.S. pressure.
“If the U.S. is bent on imposing tariffs, China will fight to the end, and this is China’s consistent official stance,” said Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing.
Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies in Washington, said Beijing is unlikely to change its posture when it sees inconsistencies in U.S. foreign policy goals toward Russia and Iran, whereas Beijing's policy support for Moscow is consistent and clear.
It's also possible that Beijing may want to use it as another negotiating tool to extract more concessions from Trump, Kennedy said.
“Beijing simply can’t afford to walk away from the oil from Russia and Iran," said Danny Russel, a distinguished fellow at the Asia Society Policy Institute.
“It’s too important a strategic energy supply, and Beijing is buying it at fire‑sale prices,” he added.
A 2024 report by the U.S. Energy Information Administration estimates that roughly 80 percent to 90 percent of the oil exported by Iran went to China.
The Chinese economy benefits from the more than 1 million barrels of Iranian oil it imports per day.
China also is an important customer for Russia, but is second to India in buying Russian seaborne crude oil exports.
In April, Chinese imports of Russian oil rose 20 percent over the previous month to more than 1.3 million barrels per day, according to the KSE Institute, an analytical center at the Kiev School of Economics.
