EQT President and CEO Toby Z. Rice joins ‘Mornings with Maria’ to discuss the sudden rise in oil and natural gas prices as the Middle East conflict rages.
The U.S. is reportedly considering asking China to curb its purchases of oil from America’s adversaries, like Iran and Russia, ahead of President Donald Trump’s trip to Beijing at the end of the month.
The Wall Street Journal reported that Treasury Secretary Scott Bessent is weighing whether to raise the issue of China’s energy purchases with his counterpart, Vice Premier He Lifeng, when they meet in Paris mid-March.
The Journal’s report cited people familiar with Bessent’s meetings with former U.S. officials, business executives and policy analysts about how the administration wants China to buy U.S. energy products instead.
China sources a significant portion of its oil purchases from Russia. Those purchases come at a steep discount due to international sanctions levied on Russia’s energy sector that stem from its ongoing war against Ukraine, which has been funded in part by Moscow’s oil sales.
CHINA COULD FACE ‘REAL PROBLEMS’ WITHIN TWO MONTHS IF STRAIT OF HORMUZ CRISIS DRAGS ON, EXPERT WARNS
Treasury Secretary Scott Bessent is reportedly discussing plans to ask China to curb its purchases of Iranian and Russian oil in favor of U.S. energy. (Alex Wong/Getty Images)
It’s unclear whether China would consider paying more for American oil and potentially undermining its close ties with Russia while its strategic partner is straining to fund its war effort.
Iran is also factoring into Bessent’s consideration of energy issues related to China. The Journal’s report indicated that the Treasury chief wants China to commit to cutting back its long-term reliance on Iranian oil if Iran’s energy sector is able to resume shipments after U.S. and Israeli strikes on the country.
Iran’s conflict with the U.S., Israel and other countries near the Persian Gulf has hindered the flow of oil shipments through the Strait of Hormuz. (Giuseppe Cacace/AFP via Getty Images)
China’s economy is heavily reliant on imported energy and, as of this year, imports from Russia, Iran and Venezuela made up over one-third of China’s total oil imports despite disruptions in supplies from Venezuela after the ouster of Nicolás Maduro, according to the report.
The report also noted that Bessent has said in private meetings that the Trump administration is pressing China to step up purchases of Boeing jetliners and soybeans grown in the U.S., along with a relaxation of China’s export controls on rare earth minerals.
GORDON CHANG URGES US TO TREAT CHINA AS ‘ENEMY COMBATANT,’ WARNS SUBS OPERATING ‘VERY CLOSE’ TO US
President Donald Trump and Chinese President Xi Jinping are expected to meet in Beijing within a month. (Evelyn Hockstein/Reuters)
The Chinese government put in place tough restrictions on exporting rare earths, which are elements used in a vast range of advanced technological products, in response to the White House’s tariffs.
For its part, the Chinese government is expected to press the U.S. to be more proactive in its stance against Taiwanese independence.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
China views Taiwan, a self-governing democracy, as part of its territory even though the Chinese Communist Party has never controlled Taiwan.
The U.S. adheres to a “One China” policy that acknowledges China’s position that Taiwan is part of it but doesn’t recognize that view. By contrast, China asserts that Taiwan is its sovereign territory under the CCP’s “One China Principle.”
