After President Donald Trump’s three-day visit to Beijing last week, many questions remained unanswered about what concrete agreements were actually reached with Chinese President Xi Jinping.
The meeting itself was a significant event, amid the increasingly strained US–China rivalry. Thus, the summit was primarily focused on resetting the tone of the relationship between the world’s two largest economies after a tense period that had pushed both sides close to economic decoupling.
Good news, then, that both leaders seem interested in more stable and predictable economic ties, while also emphasizing that many details still need to be worked out and that the outcomes so far should be viewed as preliminary. Among the key economic announcements was the creation of two new institutions—a ‘board of trade’ and a ‘board of investment’—designed to manage bilateral economic relations and address disputes.
The United States said China agreed to purchase at least $17 billion worth of American agricultural products annually, as well as an initial deal to buy 200 Boeing aircraft. Both sides also indicated plans to expand agricultural trade and work toward mutual tariff reductions, although several major issues—including technology export restrictions and rare earth supply chains—remain unresolved.
China Is about to Buy US Oil
Energy emerged as an unexpected theme after last week’s summit, as the White House said Xi also expressed interest in buying more US oil, a potential sign that Beijing is exploring new supply options as disruptions in the Middle East force China to rethink its crude import strategy.
‘They’ve agreed they want to buy oil from the United States, they’re going to go to Texas, we’re going to start sending Chinese ships to Texas and to Louisiana and to Alaska,’ Trump said after his meeting with the Chinese President.
For China, increasing imports of US crude could help reduce its dependence on the Middle East at a time when supply routes through the Persian Gulf remain under severe strain. Iran has kept the Strait of Hormuz—a chokepoint through which roughly 35–40 per cent of China’s crude imports normally pass—effectively closed for nearly three months.
Still, there are reasons for caution. Chinese official summaries of the Trump–Xi summit made no mention of possible US energy purchases, and China’s Foreign Ministry declined to confirm the White House account when approached by media outlets.
Russia also stands as a potential alternative source of supply, with Moscow prepared to expand exports to China further if required.
China Could Also Help Mediate Talks with Iran
The disruption in Hormuz has come at a particularly difficult moment for Beijing. Earlier this year, the overthrow of Nicolás Maduro brought Venezuelan oil exports under Washington’s influence, cutting off another important source of supply for China.
Since the outbreak of the Iran conflict, Chinese state-owned refiners have reduced processing by more than one million barrels per day due to crude supply disruptions.
The standoff in the Strait of Hormuz also shows little sign of easing—bad news for China, as Beijing had been purchasing roughly 90 per cent of Iranian crude exports. There are also indications that Tehran has no intention of returning to the pre-war status quo and is instead considering a new toll-based system for traffic through the waterway.
In the recent days, Iran’s First Vice President stated that Tehran would no longer permit the passage of what it described as ‘enemy’ military equipment through Hormuz. Meanwhile, the chairman of Iran’s parliamentary National Security Committee said Tehran would soon unveil a ‘professional mechanism’ to manage traffic through the strait, with fees collected for what he called ‘specialised services’.
At the Xi–Trump summit, China has reportedly agreed to assist in negotiations with Iran and not to provide military equipment to Tehran, while the Chinese president also expressed interest in keeping the Strait of Hormuz open and free of tolls.
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