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Amid US-China trade war, a new source of tension emerges: Iranian oil
- China and the US are looking at a new round of trade talks. But dire US relations with Iran complicate China’s attempts to import Iranian oil and meet its huge energy needs
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There is hope that a new round of talks next month will bring China and the United States closer to resolving their trade dispute. But even if that proves to be the case, diverging strategic national interests mean the two economic behemoths will continue to clash.
Indeed, energy security issues may be the next flash point.
China has every right to maintain its own energy security and every right to decide whom it buys that energy from. Equally, the US has every right to pursue its own interests but often seeks to persuade others to follow its lead. While many countries would cooperate with Washington, Beijing could conclude that China’s economic interests and place in the world dictate a more independent stance.
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China depends on energy imports, as it does not produce enough to power its own economy. Conversely, the US has become less reliant on imported energy due to its success in producing oil and gas from its own shale fields.
Washington’s comfortable position with regard to energy security has arguably allowed it to be more proactive about achieving foreign policy objectives in the Middle East. That is likely to lead to friction with Beijing, which is pursuing its energy needs in the region.
China’s appetite for imported energy is increasing. “China’s reliance on oil and gas imports is growing too rapidly, with oil topping 70 per cent and gas moving towards 50 per cent,” Lin Boqiang, director of the Energy Economics Institute at Xiamen University, told Reuters.
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