Is China set to overthrow US in oil market?

TEHRAN, Dec. 11 (MNA) – 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.

 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.

As the world’s 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.

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.

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.

As the world’s 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.

In line with the country’s 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.

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.

By Ebrahim Fallahi

First published in Tehran Times

News Code 194769


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    • US 13:07 - 2023/02/03
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      Maybe pushing to replace Yuan with dollar is one way to balance the centers of powers in the world to creat a multipolar world and end the dominance of dollar on world economy and with it make terror sanctions dull if not things of the past