Trump’s China Trade Deal: Will Saudi Lose Out?

Beijing says that it will step up imports of US crude as part of a compromise deal hammered out in recent days that looks to have averted a trade war.

On the surface it’s a win-win: China would likely have imported more US crude in any case, and Trump can claim the resultant fall in his country’s trade deficit with China as a famous victory, even though the net effect on the country’s trade position will be near-zero (if the cargoes weren’t going to China they would go elsewhere).

China’s imports of US crude and LNG are set to soar as much as fourfold from $8bn to $20-30bn this year (see charts).


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE