Could the energy crisis prompt US and China to ‘sit down and work together’?

As the Strait of Hormuz crisis roils world energy markets, China and the US still have strong potential to work together to find solutions, according to a researcher with a Chinese think tank. Wang Lining – who heads the oil market department at the Economics and Technology Research Institute under state-run China National Petroleum Corporation – also said Washington’s change in direction on energy diplomacy was a “reminder” that Beijing could play a bigger role in global governance. Wang made the remarks on Monday during a virtual event held by Renmin University of China in Beijing. He said China and the US remained highly interconnected in the energy sector, despite their strategic rivalry. “There is still significant room for energy cooperation between China and the United States,” Wang said. “From a structural perspective, the complementarity between the two countries is very strong.” He noted that the US was a major oil and gas exporter, while China was the world’s largest energy importer – creating a significant opportunity for both. Wang said they could cooperate on areas such as carbon capture, utilisation and storage as well as grid stability, pointing to Washington’s growing commitment to nuclear energy and China’s push to decarbonise its fossil fuel industries. He also noted their role in global energy security. “Recent sharp fluctuations in global energy prices and the risk of supply chain disruptions are a call for the two countries to sit down and work together to find solutions,” Wang said. It comes as the Strait of Hormuz crisis has led to one of the most severe global energy shocks seen in decades. Deadly US-Israeli strikes prompted Iran to effectively close the waterway that is used by a quarter of the world’s seaborne oil trade and for liquefied natural gas and fertiliser shipments. As the disruption continues, observers have been closely watching how China – one of the biggest users of the shipping lane – responds to the situation. Meanwhile, US President Donald Trump has delayed a trip to China for talks with Chinese leader Xi Jinping to keep his focus on the war in Iran. Trump was expected to seek an economic deal that included Chinese purchases of US energy and agricultural products. When they do meet in China – a trip now expected in May – the conflict in the Middle East, stabilising the global economy and oil prices are likely to be high on the agenda. Trump on Monday posted on his Truth Social platform that if the Strait of Hormuz was not immediately “Open for Business” the US would be “blowing up and completely obliterating” Iran’s energy and oil sites and the strategically important Kharg Island. Still, he said the US was “in serious discussions” with Tehran to end the war. Iran’s foreign ministry on Monday denied there was any direct negotiation with Washington. Trump also said in a Financial Times interview published on Sunday that he wanted to “take the oil in Iran” and was considering seizing Kharg Island – a key hub for crude exports in the Gulf. Speaking at the same webinar on Monday, Xu Yanran, an associate professor of international relations at Renmin University, said Washington had shifted focus in its energy diplomacy to rule-setting, supply chains, “exclusive” allies, and a “de-risking” strategy. “US ties with major energy producers such as Saudi Arabia are no longer focused solely on the amount of resources it can obtain but increasingly on shaping international energy rules and standards to … consolidate its leadership,” she said. “It is building an exclusive network of allies … to jointly set technological and trade rules, forming collective competitive strength,” she added. Wang said the influence derived from institutional power “far exceeds” that of control over physical resources since it could “penetrate” other countries’ policy frameworks, industrial structures and technological standards. “By exporting its institutional standards, the US is building a global green industrial chain, which also serves as a reminder for us … of how China can better play a more important role in global governance,” he said. “We have huge advantages in the market and industrial chains. How to play our part is a task we should work on next.”

Could the energy crisis prompt US and China to ‘sit down and work together’?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Washington’s change in direction is a ‘reminder’ that Beijing could play a more important role in global governance, researcher says

Washington’s change in direction is a ‘reminder’ that Beijing could play a more important role in global governance, researcher says