{"id":2675,"date":"2022-12-11T13:15:36","date_gmt":"2022-12-11T13:15:36","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=2675"},"modified":"2022-12-11T13:15:38","modified_gmt":"2022-12-11T13:15:38","slug":"is-china-set-to-overthrow-us-in-oil-market","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/2675\/","title":{"rendered":"Is China set to overthrow US in oil market?"},"content":{"rendered":"
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President Xi has called on Arab leaders to use yuan in their oil and gas trades with the country, a move that would support China’s goal to establish its currency internationally and end US dominance in global energy market.<\/p>\n\n\n\n

 Xi Jinping made the remarks on Friday in Riyadh where Crown Prince Mohammed bin Salman hosted two Arab summits with the Chinese leader to make a new milestone in China-Arab relations.<\/p>\n\n\n\n

As the world\u2019s biggest oil exporter and consumer, Saudi Arabia and China both sent strong messages during Xi’s visit on “non-interference” at a time when Riyadh’s relationship with Washington has been tested over human rights, energy policy, and Russia.<\/p>\n\n\n\n

The shift from dollar to yuan is deemed necessary by both countries in light of the “increasing weaponization of the dollar-dominated financial system,” they said, hoping the move to inject certainty into bilateral trade and dent the US dollar’s hegemony of the global oil market.<\/p>\n\n\n\n

Any move by Saudi Arabia to ditch the dollar in its oil trade would be a seismic political move, which Riyadh had previously threatened in the face of possible US legislation exposing OPEC members to antitrust lawsuits.<\/p>\n\n\n\n

As the world\u2019s second-largest economy, China has been looking to grow its presence in West Asia, and replacing the dollar in the global energy scene would be a great advantage for the Asian giant in pursuing the mentioned agenda.<\/p>\n\n\n\n

In line with the country\u2019s political discourse, China has also expanded energy ties with Russia and Iran, as the country sees Russia as a major power with huge economic, defense, military, and technological potential and Iran is also a large economically developed country, which has made huge progress in its defense industry.<\/p>\n\n\n\n

A possible coalition of East nations including Iran, Russia, China, and Saudi Arabia would have harsh consequences for the West and especially for the US.<\/p>\n\n\n\n

By Ebrahim Fallahi<\/p>\n

Updated on