China rejects U.S. appeal to cease oil purchases from Russia and Iran
In a significant geopolitical development, a standoff between the United States and China has emerged over the issue of oil imports from Iran and Russia.
The U.S., in a move announced in April, is pushing for a reduction in the funding available for the militaries of Russia and Iran by restricting oil sales. This demand is linked to ongoing trade negotiations, with the U.S. threatening punitive measures such as a 100% tariff on Chinese goods if China does not comply.
However, China, an important customer for Russia, but second to India in buying Russian seaborne crude oil exports, has shown no signs of yielding to this pressure. Beijing's policy support for Moscow is consistent and clear, according to Scott Kennedy. China's Foreign Ministry has stated that it will ensure its energy supply in ways that serve its national interests, in response to the U.S. threat of a 100 percent tariff.
China's stance is particularly firm when it comes to Iranian oil. Approximately 80% to 90% of Iran's oil exports go to China, as estimated in a 2024 report by the U.S. Energy Information Administration. The Chinese economy benefits significantly from the more than 1 million barrels of Iranian oil it imports per day.
Despite the U.S. pressure, China remains firm on maintaining its current energy policies. Although U.S.-China trade talks show some progress on other issues, the oil import dispute remains a major sticking point. Both sides express optimistic rhetoric, but China remains firm on maintaining its energy independence and sovereignty.
This standoff arises amid ongoing geopolitical conflicts—Russia’s war in Ukraine and Iran’s regional influences—and U.S. efforts to isolate these countries economically. A potential U.S.-China summit may hinge on resolving or managing this dispute.
In Stockholm on July 30, trade negotiations between U.S. and Chinese officials took place, but the oil import dispute remains a significant challenge. According to Tu Xinquan, director of the China Institute for WTO Studies, if the U.S. imposes tariffs, China will fight to the end. Danny Russel suggests Beijing may use oil purchases as a negotiating tool with the U.S.
Beijing's unwillingness to change its posture regarding oil purchases from Russia and Iran is due, in part, to perceived inconsistencies in U.S. foreign policy goals. The KSE Institute, an analytical center at the Kiev School of Economics, reported an increase in Russian oil imports by China in April, with Chinese imports of Russian oil rising 20% over the previous month to more than 1.3 million barrels per day.
In conclusion, the standoff is mainly over the U.S. attempting to use trade leverage to compel China to stop buying Iranian and Russian oil, while China rejects this demand, strongly defending its energy independence and sovereignty despite threats of tariffs or sanctions.
- The U.S.-China standoff over oil imports from Iran and Russia, rooted in trade negotiations, expands the scope of general politics, as both nations apply pressure tactics, with China resisting U.S. demands and emphasizing its energy independence.
- Despite ongoing talks and some progress in other areas, the dispute over U.S.-imposed oil import restrictions remains a thorny issue in general-news politics, with China's unwillingness to alter its stance regarding purchases from Russia and Iran signaling a commitment to preserving its energy sovereignty.
