Xi Jinping completes Saudi tour
Payment in renminbi of energy transactions
38 trillion economic cooperation wins with Saudi Arabia
Promotion of diversification of energy imports, etc.
Ease your anxiety about import restrictions in an emergency
Confirmation of “opposition to Taiwan independence”, etc.
Get the support of Arab leaders
Chinese President Xi Jinping returned home on the 10th after a four day and three night visit to Saudi Arabia. During his visit, Xi announced to leaders of Arab countries in the Gulf region that he would push for renminbi payments for oil and gas imports. He is being interpreted as a paving stone to break the hegemony of the dollar by digging into the gap where US influence in the Middle East has weakened.
Summarizing the announcement by China’s Foreign Ministry and foreign media reports on the 11th, President Xi met with King Salman bin Abdulaziz Al Saud of Saudi Arabia and Crown Prince Mohammed bin Salman from 7 to 10, followed by visits from 17 Arab countries, including Egypt, Qatar, Tunisia, Yemen and Morocco, had a summit meeting with
With this visit to Saudi Arabia, the first in nearly seven years since January 2016, President Xi solidified relations with Middle East leader Saudi Arabia, which has recently widened the gap with the United States. This time, the two countries signed an economic cooperation agreement worth 110 billion rials (about 38.6 trillion won) in various fields such as green hydrogen, solar energy, construction, information and communication. The deal also included a plan for US-sanctioned Chinese telecommunications equipment maker Huawei to build a high-speed Internet and cloud complex in Saudi Arabia.
During his visit, Xi announced that he would focus on renminbi settlement for oil and gas imports over the next three to five years. In a keynote speech at the China-Arabian Gulf National Cooperation Council summit on the 9th, President Xi said, “China continues to expand imports of crude oil and liquefied natural gas from the Gulf Cooperation Council (Saudi Arabia, Emirates United Arab Emirates, Kuwait, Qatar, Oman, Bahrain) and oil We will use the renminbi to enhance cooperation in gas development and clean, low-carbon energy technology.
Since the 1974 oil crisis, Saudi Arabia has maintained the ‘petrodollar’ system in which the United States provides security instead of trading oil only in dollars. The promotion of yuan settlement for oil and gas is intended to break the hegemony of the dollar. It is also interpreted that there is an intention to ensure a stable supply source in preparation for the situation where the West restricts energy supplies to China in case of an emergency in Taiwan.
Reuters, citing sources in Saudi Arabia, said: “It is understandable that Saudi Arabia sets small amounts of oil exports in yuan to pay for Chinese imports, but now is not the right time.” Saudi expert Ali Shihabi told CNN: “This will not happen in the foreseeable future,” but predicted: “Eventually, Saudi Arabia will abandon dollar payments, as China has significant influence as a major oil customer.” of Saudi Arabia”.
Arab leaders are also in favor of strengthening cooperation with China. In the “Riyadh Declaration” announced following the Arab-Chinese summit on the 9th, the Arab countries confirmed their support for the “One China” principle and their opposition to Taiwan’s independence. Former Deputy Secretary of State Danny Russell told The New York Times: “(Through this visit), President Xi is showing that the Arab world is not alone in the United States.”
However, Diplomat, a US media diplomat, said on the 10th: “Saudi Arabia completely relies on the United States for security, and US strategy in the Middle East depends on a close relationship with Saudi Arabia.” Saudi Arabia’s most important ally on behalf of the United States is scarce.”
