Friday, October 5, 2018

China hits back hard in Trump's trade war by halting imports of U.S. oil and expanding imports of Iranian crude

Since China has a limited amount of U.S. imports they can tack on retaliatory tariffs to in the ongoing trade war with the United States, the Far Eastern country has instead focused on other areas to induce pain on Washington.  And one of the newest is in their completely halting the purchase of U.S. crude will expanding their imports from places like Iran.

America’s second-largest oil client, China, has completely stopped buying crude from the United States as trade tensions between the world’s two largest economies continue to grow. 
While oil has not been included on the list of bilateral tariffs, Chinese refiners have been staying away from buying crude from the US. 
In fact, China may be the largest buyer of American crude since much of the oil imported by Canada is re-exports – Canadian crude that briefly crosses into the US on pipelines before re-entering Canada. After ending a 40-year ban on oil exports in late 2015, the US has ramped up sales to two million barrels per day (bpd). 
China buys most of its crude from Russia, with imports soaring from 665,000 bpd in 2014 to 1.2 million bpd last year. Beijing’s other major suppliers are Saudi Arabia and Iran. – Russia Today
By publicly continuing to purchase oil with Iran, and in currencies other than the dollar, China is able to conduct a two-fold attack on Washington by not only ignoring the unilateral sanctions they have imposed on the Middle Eastern regime, but also in coaxing another OPEC nation to de-dollarize and accelerate the the time frame to end dollar hegemony. 


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