China's Energy Independence vs US Trade Demands: A Global Trade Tug-of-War

Trade tensions between the US and China persist as China resists US demands to halt oil purchases from Iran and Russia. US Treasury Secretary Scott Bessent emphasizes the importance of sovereignty, while experts doubt the feasibility of a 100 percent tariff. China remains firm on its energy strategy.


Devdiscourse News Desk | Washington DC | Updated: 04-08-2025 06:32 IST | Created: 04-08-2025 06:32 IST
China's Energy Independence vs US Trade Demands: A Global Trade Tug-of-War
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US and Chinese attempts to reconcile their trade discrepancies are showing progress, yet a critical issue remains unresolved: China's steadfast refusal to cease buying oil from Iran and Russia, despite US demands. On Wednesday, China's Foreign Ministry publicly stated on X that they will always ensure their energy supply aligns with national interests, undeterred by US pressure.

The US, aiming to reduce military funding for Russia and Iran, sees this demand as essential. While optimism surrounds the negotiations, China's rigid stance on energy and sovereignty, as echoed by US Treasury Secretary Scott Bessent, creates friction. Experts, like Gabriel Wildau from consultancy Teneo, suspect that President Trump's severe tariff threat is more bark than bite and might derail the recent diplomatic improvements.

Amidst this diplomatic impasse, China's ongoing oil deals with Russia and Iran remain crucial. Beijing's energy priorities underscore a strategic solidarity with Russia, despite potential trade fallout. This commotion places China in a powerful negotiating position against the US, emphasizing their resolve not to yield to foreign pressures.

(With inputs from agencies.)

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